Alright… let’s test the knowledge and the willingness to help others in this forum.
I am 23y/o in Birmingham, AL; I work in a real estate development firm as an assistant controller while also pursuing my CPA. I am desperately trying to get my feet wet in the MHP space. I have a property I am looking to pursue at $500k asak price, 26 units, MHP is in okay shape, rent hasn’t been increased in 4 years. Park is in a great suburb.
I have a 3 unit property I bought roughly $60k under its value that I am aiming to sell and engage in a 1031 exchange for this property after the start of the year. I want to use these proceeds as a downpayment on the park, financials show the park to cashflow itself with the projected financing.
What am I not looking at here? What is not being considered? What other financing options could be pursued?
Seller is willing to wait on you to sell your other property? If it’s a great deal you might want to tie it up sooner (even if it’s a P&S with 4 month close)
Follow the DD steps make sure you’re not missing any flaws in the utilities and you’ll be fine.
You need to look at utilities, demand for the area, if there is room to expand or not, how many park owned homes vs tenant owned homes. Park owned homes = more work for you.