In contract to purchase a MHP for under 1 million, local bank will do $500k note , but requires 25 percent down. The increasing rates and small park is impacting cash flow of park. What are you guys seeing regarding interest rates for a small park.? ^.6.5% -7%?
The park is in a good metro. It does need work, infill and rents raised . The park will need some work to get cash flowing . The park is a wholesale deal.
Would need need do POH rentals to get it cash flowing immediately
Rent out the 3 bedroom house. Is this normally the result of a small park or one that is a turn around park? Would a lender even touch it? Any suggestions with this deal?
LOTS 33
PAYING 23
Open Trailer-Need rehab 2
OPEN TRAILER-NEEDS TITLE 1
*Vacant Lots 5
**Open Lot (trailer frame present) 2
Options for immediate cash flow:
repair 3 bedroom house = rent it out
try to make apartment above garage legal and rent the space (not currently legal)
sell house and recapture the cost to reduce note
request a price reduction (not likely ) to save deal
Numbers 7% rate, 25 amort, 25% down
My Numbers Potential Numbers
$80,040.00 $99,360.00 -lot rent
$(4,002.00) $(4,968.00) - collection allowance
$76,038.00 | $94,392.00 -net lot rent
|$105,907.20 $106,486.80 -Total Expenses
| $(29,869.20) $(12,094.80 ) Net Income
**Adjustments to Get to Net Operating Income**
17,181.00 17,181.00 Depreciation
36,000.00 36,000.00 Interest - Mortgage
$53,181.00 $53,181.00 Total Addbacks
$23,311.80 $41,086.20 Net Operating Income (Net Income + Addbacks)
$42,936.84 $42,936.84 Mortgage Payment
$(19,625.04) $(1,850.64) Net Cash Flow