OK,
Things are getting pretty exciting for me now. Have met with the seller’s atty and gotten rent rolls and tax returns to help me formulate an offer. Attached is my spreadsheet analysis of the deal. Owner was asking $600k, and the response to my $540k offer was “lets talk”. Seller is an older lady looking to get out but not desperate.
Park is a senior only, older, high density park (36/37 spaces on 2.9 acres), with paved streets, city sewer/water, a small septic tank for common area lawn (need to follow up on that), in a large suburban market. Surrounding parks all have low vacancies, and slightly higher rents. Demographics and employment is strong.
For you pro’s out there would really appreciate feedback on whether my numbers make sense.
For you newbies - enjoy the spreadsheet. Hopefully it makes sense.
I have a few areas to follow up on such as why the insurance premiums keep declining (need to check coverages), and why the property taxes are moving all over the place, but figure that’s what the due diligence period is for. Current owner seems very light on the expenses which is surprising given that I took the numbers from their tax returns (would assume higher expenses, lower income on this “set” of books). Deal looks plenty good at this point to my eyes barring any huge capital issues uncovered during DD.
Thanks in advance for the feedback and look forward to continuing my MHP education!
Ron