Boot camp attendee here. First post on the forum, so thanks in advance for any insight that you provide.
I am about to put my first park under contract. It is coming with some POHs, so I am breaking up the deal into two transactions - one for the park, and one for the homes. Each transaction will be with a separate LLC, which I have yet to establish. Two questions:
First question - what is the best way to allocate the purchase price between the park transaction and the home transaction? Purchase price is $750,000, coming with 51 POHs. The homes are old and not in great shape, and I’m planning on offloading them as soon as possible, either with a quick cash transactions or through a rent credit program. I could flip the park in 2 years, or I could hold onto it for 20. Haven’t decided yet. Any thoughts on the price allocation that makes the most sense from a depreciation / tax perspective would be appreciated.
Second question - how much of the corporate legwork should I do upfront before I get the park under contract? Should I have the LLCs established, bank accounts opened, etc., before getting it under contract?