Just signed a contract on a small park in the rural Midwest. Working on due diligence. Familiar with the town. Smaller community but a steady population with a strong industrial job base with good-paying jobs.
Asking price: $250,000
Accepted offer: $218,000
9 occupied TOH
11 vacant lots
City sewer (currently paid by park)
City water (currently paid by park)
Current rent gross per year: $37,000
Current expenses per year: $37,000
Lot rent: $350 water, sewer, garbage included
City government is on board with us, want to see it brought back to life, last couple owners have done almost nothing to infill or upgrade the park. They want affordable housing.
Good demand for housing in the area.
Median income: $64,000 a year
Meadian home price: $205,000
One-bedroom apartments start at $650 with heat paid
The remaining homes in the park are a mix of old and worn out, to mediocre.
Change water, sewer, garbage billing to direct to tenants. The City may even take it on. Currently running $14,000 a year.
Bring in new, and almost new homes for sale to make it work.
In an AE flood zone.
Poor cash flow in the beginning.
Big expense to infill. BUT I am a manufactured home dealer and can floor plan new units.