Looking to purchase my first MHP and this is one of the deals I’m looking at.
16 lot park with 9 lots occupied and 1 POH. Park is a 3 hour drive from my house in a town with 13000 people and population of 580000 within a 25 mile radius of the park, and median income of $44k. City water and sewer. Tenant pays electric, park pays for other utilities, lot rent is $175. Owner wants $173k.
Seems like he’s fed up with the park from a bad run of managers
Cons: it’s right next to a refinery but owner says he can’t smell anything. Also, a few of the existing tenants are inconsistent in paying.
I’m thinking of offering $100k with 20% down and have the owner finance the rest.
Is the refinery a deal breaker?
What do you think of the owners asking vs my offer?
Is this park too small to be trying to manage from 3 hours away?
My concerns are the inconsistent paying tenants,the vacant lots will be cumbersome to fill from 3 hours away, and lastly the most I could turn this park into is a $200k park if I raise rents and fill all the lots, so not a ton of upside.
I’d be curious to hear some thoughts on this deal and my concerns.