I’m looking to assign a contract on a MHP in Cascade, Virginia. Two parcels that total 45 acres come with the sale. I’m not sure if the city would allow for expansion but it’s there if you get the green light.
The park is grossing around $5400 a month. By adding two more trailers and a lot rent increase, it can be grossing $6500 a month. Lot rent hasn’t increased in 7 years. Asking $415,000. Seller will hold paper with 50% down at 4.5% over 20 years with a 6 year balloon.
Whats the NOI? Who pays utils? What is current lot rent? What is potential lot rent? How many park owned homes? What is park owned home rent? Who manages the park?
Current lot rent ranges. The owners has “grandfathered” tenants rent. THe longer they have been there, the less they pay. My suggestion would be to raise lot rent across the board to one level. Currently, they pay from 140-160 a month.
Area parks are $200 dollars or more, so raising rents to $170-180 isn’t unreasonable. There are 18 homes in the park now and 9 of them are Park owned. The current owner self manages and he is willing to stay on as a manager for a small fee.