As I’ve posted before, I’m hunting for a park. I’m looking for a 100+ lot park w/at least 30% vacancy to have a nice upside.
The question I have is in the numbers. As I am finalizing my business plan and working on the projections, I need to see if I am using realistic numbers. I am conservative by nature, so please keep that in mind.
Let’s say I have a park with 40 vacancies. That means that I would have to lease/option those 40 homes to have a full park. I am plugging into my spreadsheet that I will sell 10 homes the first year, w/15 homes each year after. Is this number realistically conservative (how do you like that term!)?
Or should I go lower or higher? I know that it will depend heavily on the market, but lets just assume that I am going to only buy a park in a promising area with solid demographics and pop. density, etc. etc. etc.
On the purchase side, I’m plugging in $12K for purchase of a 14’ 3x2, move and setup. Is that too little? Can I even find 10 to 15 homes a year?
Here’s where I always get caught scratching my head. To fill the vacancies, I’ll need from $120K to $180K a year to buy the homes. I’ve got enough to cover the down payment plus a couple years, but beyond that I’d be scraping by. Besides investors, are there any banks loaning money or buying notes so that I can still make a profit on the homes AND fill vacancies (I know…I want to have my cake and eat it too)?
Sorry for the length. I am just a detail oriented kind of guy and need to make sure that my numbers add up. With these projections listed above I’m showing that I wouldn’t be in the black until the 3 yr.
Thanks for any input.