Hi everyone. Love this forum, have been reading a lot of the past posts and articles. As a background, a friend and I have been wanting to get into mobile home parks for a while. He has more capital than me, I have no capital. We both have decent income, around 90k each. We found a park near within miles of our houses and we would love some advice on the deal.
The park comes with 22 spaces, a public storage building with approx. 23 individual storage units on and is on 8.3 acres of land with the back four partially cleared. The seller owns 19 trailers and is renting 3 spaces. The water is city water no fire hydrant. It is total electric. It is on community sewer which is on the property . The spaces septic tanks (5) were repaced and two are left to install . He has just added a fence around the overflow pond.
The seller can only furnish rent reciepts with an accepted offer between the two parties. The park is to be sold as is and no repairs to be made by seller, there is no owner financing at $450,000.
Things change on the weekly and monthly basis and there are no leases.
In addition to the 22 spaces, there is a 1000 sq ft house in the front of the property that is in bad shape. 14 of the 22 spaces are rented for anywhere between 300-700 a month. The seller says the total monthly income is approx $7850 and the annually:
Flood insurance __________________$1400.
Property tax ____________________ $1450.
I feel that we can institute some of the ideas that I’ve read on here to make it more income producing, but the seller is asking $450,000 with no owner financing.
Truly any and all advice would be welcome and I thank you for taking the time to read this.