Help with my first park offer

mobile home university
1

39 Lot Park
17 Tenant Owned Homes @ $190/month lot rent
1 Park Owned Stick Built Rental House @ $450/month
11 additional vacant RV lots
22 Vacant Mobile Home lots

  • City Water/Sewer
  • Park Pays Utilities
  • city population in Missouri is 11,000
  • Metro Area population 85,000
  • Average Home price is $140,000

Current Park Gross Income: $39,500.00
Current NOI: $27,070.00

Asking Price $274,000
Our first offer was $245,000.
The sellers countered at $265,000.

What should our counter offer be???
Or should we renegotiate during due diligence since it seems like their expenses are too low?

Thank for any advice.

Larry

2

Figure out what the expenses will be when you own and operate the park and determine you own NOI then make an offer based on that figure. If you feel their NOI is correct then their counter offer is just a hair better than 10% and if it were me I’d take it and get working on the due diligence.