Hi and thank you ahead of time for your responses.
I’ve been a long term SFH landlord, recently searching for mid/large apartment complexes/commercial income prodcuing props. At a recent REIA, met a MHP owner that wants to sell. This would be my first park so your feedback is greatly appreciated.
Details as I know thus far:
- 100 unit park in Triangle area NC, just on outskirts of city. Rapid population growth in this area.
- Only one park owned trailer, used for management
- $300/pad/month. Hasnt raised rents since owner purchased in 2009.
- 100% occupied with supposed waiting list
- Asking around $2.3M, might be a little flexible
- Owner selling only because their financial partner wants to liquidate for bigger project
- will consider owner financing with 50% down
Based on reading thru the discusssions, I obviously need to find out about who pays utilities and source of water/sewer, but I think the rule of thumb is 40% expenses worse case.
Asking price is just shy of 10% CAP. Due to strong area and potential for lot increases, would this be a decent first park to pursue?