I posted with my interest in this park several months back. since then i have been able to negotiate the park to a purchase price of 80,000. My wife and I are a young couple and have been wanting to purchase a mobile home park for a couple years now.There are a total of 17 lots, all city water and sewer. They are all tenant owned. varying from older to newer homes. 2 renters are renting a double lot and are paying $175 ($100 for the lot there trailer is on and 75 extra just for the extra land), one important note I should make is that it does not appear to meet the health department spacing requirements if we were to move a trailer in this lot (though i have not measured). 2 more are paying $75 for lot rent. 11 are paying $100 for lot rent. This adds up to be $1600 in monthly income. The owner never really enforced rules or regs and has never raised lot rent. The park does need some clean up work but its not terrible. The park is not located in a metropolitan area. Most renters have been there for years. Another park I called on close buy was renting for $125 lot rent and another about 45 mins away in a fast growing metro area was renting for $240.
Owner lives away in Florida and is wanting to sell. Originally she was asking 160,000
19200 yearly income
1000 yearly exp (apprx)
= 16397 income after expenses apprx.
I realize we have to start somewhere with this, would you guys recommend pursuing forward ?
Thanks in advance for your concerns and input.