This would be my first park if the deal goes through. It is a 15 lot park plus 2/1 home on property in SE Indiana (I live in Florida). Lot lease only, 9 occupied but 6 homes are RTO. Purchase price is $98,000 for park, stick built 2/1 and RTOs all included. Lot rent is $165 with W/S/T included(slightly low for area based on comps, could raise $20 day 1). Total expenses shown are $10,497. Total revenue is $37,555, but this includes lot rent @ 17,820, RTO income @ 14,335, and home rental at $5,400. After I sell the home and once the RTO income dries up and I only have lot rent, the revenue would be $20,520 without any additional homes added and a rent raise to $190. This would put it right around a 51% expense ratio once rent is raised which sounds about right for a small park that pays for W/S/T.
- Small home appraised at $51,000. Could be sold ASAP and use the funds from sale to place additional RTO homes on property. Average home price in the city is $65,000(seriously).
- Upside once additional units brought on and sold.
- Low purchase price.
- City sewer/water. Park owns the lines from home to hookup.
- Tenants pay for electricity and gas.
- Only need to add 6 homes to be at 100% capacity.
- Very poor teaser ad response. I place a couple of craigslist ads and only received 1 response in 48 hours.
- Somewhat rural area. No major employer.
- Park pays W/S/T
Here is the real kicker, the current owners will not provide tax documents (obviously it is an LLC and has all of their other tax info AND they will also not provide bank statements to confirm these numbers. The reason that the owner gave was that his personal and business monies were co mingled into one account and he did not want to share all of this with me. That right there kind of makes me want to just drop the deal, but does anyone see a reason for me to pursue this further?