I have a park under contract in east Texas that could has potential upside, but could be hard to fill.
17 occupied (13 homes, 4 permanent RV’s). I’m not sure if I count the RV’s?
Average lot rent for the homes is $250
RV’s pay $350
I’m valuing the park around $300k.
He’s asking $220,000, which makes it very cheap.
Here are the problems that I can see with doing Frank and Dave’s due diligence
- In the local town, houses are around $30-40k
- The large metro area is 25 miles away and already has mobile home parks around it renting sites for $250
- It’s on septic and one leach field has failed.
Any advice would be appreciated. I’m experienced on renting houses. This is my first step into MHP.