66 pads, 48 paying tenants at $300 a month, under contract for $500,000
The park is in a town of 50,000 people, about 30 minutes away from a decent city of 300,000. The local town has an unemployment of 8%, above average crime, and SFH prices of around $50,000-$75,000 nearby based on zillow. Market MHP lot rents are around $320-$330 a month.
I’ve attached what I feel is a fairly conservative/pessimistic budget for the park based on the sellers numbers with extra expense items thrown in that were left out:
There appears to be some fat in the expenses. The trash, taxes, and insurance can likely be cut.
Here’s one of the thing that worries me about the park. I don’t have an acreage measurement for the park, but some of the homes are very small. With google earth I went through and estimated the box length of each house. I grouped the data together into the following:
houses with a box size longer than 60 feet: 11
houses with a box size between 56-60 feet: 22
houses with a box size shorter than 56 feet: 26
I’m worried that many of these homes are going to be too hard to rent out once they become vacant, and are just going to be tear downs and empty lots. For some of the small lots there could be the potential to combine them into one larger lots.