Interested in this MHP how much should I offer?

I’m interested in making an offer to buy this park seen here

its a 19 pad park with 12 POH and 7 lot rent only the rent is 480monthly and the lot rent is 180,Im willing to offer the owner 180,000 cash is this too much??? theres a tenant who receives free rent for working on the POH and mowing,I live 10 miles from this and I want it badly but I haven’t ask the owner if he would sell it to me yet heres the loopnet page on it
The water bill and sewer are individual metered

This would be my first MHP and my only one as I just want 1 let me know what you guys think about the 180 offer and any tips,Ill post additional pics of park below

I haven’t even cold called the owner to discuss him selling it yet so he may not even sell but I want it want it lol any advice and tips would be greatly appreciated

also heres the loopnet page on it
http://www.loopnet.com/Property-Record/JENNINGS-RD-OLIN-NC-28660/BdC6irT1w/Property/?SRID=6565064025&jli=y

How much are the POH worth?

The loopnet link doesn’t work. If it’s not for sale then why is there a loopnet page?

You said you were going to cold call the owner, that implies it’s not for sale so I’m not clear here.

The POH are early 2000s,The loopnet page is property records not under the for sale,The google page has a good view of it just click on the sat option to see the park.

I’m looking for something to bring in decent income that’s close to my house and This seems like a good idea to try and aquire this.Loopnet states the total market value is 253,000 but I was gonna offer 180 so if you guys can view the bing or google maps page I linked and look at either birds eye view or satellite view to see the homes in the park.

trying loopnet link again

http://www.loopnet.com/Property-Record/JENNINGS-RD-OLIN-NC-28660/BdC6irT1w/?SRID=6565064025&jli=y

19 x $180 x 12 x .6 (not sure who pays the water/sewer but smaller parks always have higher costs anywhere) x 10 = $246,240. So you’re price of $180,000 would be really good, because if the POHs are 2000 models, they are probably worth at least $10,000 each. But I haven’t seen the park, so this is just based on the information you provided.

Updated info heres the breakdown of the homes

2004 clayton X1
5 Fleetwood/oakwood homes 2000s models
4 lots are empty with no homes on them Just found out
1 bank owned It has bank sticker on it
the remaining 8 homes are early 1980s models,Sorry I didn’t put this info at first but is 180,000 still a good price to pay for it?

15 x $180 x 12 x .6 x 10 = $194,400 plus the value of the homes. So, yes, the price could still potentially work. Tie it up and do some diligence on it.

@Haley1992, as per your question:

  • “Interested in this MHP how much should I offer?”

The “Knowledgable Frank Rolfe” has given his wisdom concerning the value of the MHP.

Thus, Frank is the Master and I am only a Student, so I will not comment on the value of the MHP :smile: .

I wish you the very best in your MHP search.

As a South Carolina Real Estate Broker-In-Charge and a MHP Owner I would just give a bit of advice.

Personally, I would not recommend putting the exact location of the MHP “BEFORE” getting a Ratified Contract (“Tied Up”).

All the other information that you provided to find a value is absolutely fine.

By providing the exact location of the MHP others have the opportunity to take your hard work and step in front of you (and possibly provide competition in purchasing this specific MHP).

I would hope that no one would step in front of you and your MHP that you found.

However, sometimes you have to protect yourself in the unlikely event that someone would use your information to their advantage.

We wish you the very best!

Just called the owner,He said if he was to sell it hed do it for around 240,000 but he didn’t give me a clear answer.

I tried to talk him into it by saying just thnk of all the other ventures you could do with the 240,000,He said hed get back to me within a day or 2.We talked for 35 minutes at least hes in his 70s and in bad health so I’m thinking he will do it.

Should I bite at the 240,000 hes asking I’m stupid when it comes to this but all I want is 1 park with fairly good income and stable tenants in there.I already know I wont have no headaches with the POH because of the guy who gets free rent is real handy and can fix anything.

What would you guys do???

@Haley1992 , as per your statement:

  • “I already know I wont have no headaches with the POHs because of the guy who gets free rent is real handy and can fix anything.”

You indicated that there are 12 POHs.

Owning 12 POHs is a lot for your first MHP.

Now, you did indicate that you have a wonderful Handyman who can fix anything.

Your wonderful Handyman is a big positive.

However, please take into consideration that your wonderful Handyman could potentially move out of area, get sick or pass away (hopefully not).

We have an awesome Handyman who had a wonderful, young Assistant.

This Assistant was in his 20s and sadly and unexpectedly passed away recently.

Thus, our jobs that required 2 Handymen could not be completed.

Thankfully, my Husband was able to step in and help complete one of our jobs (ceiling needed to be replaced because of a leaking roof) that required 2 men.

At our other MHP our Contractor became sick. Even though our Contractor did not physically do the work, he would not send his men out to work (for anyone) for fear that they might leave his business and start working for themselves.

Thus, any Investment / Business is dynamic (always changing) and there will always be issues of one sort or another.

Please do not go into the MHP Business thinking that it is free of all issues and concerns.

We wish you the very best!

Haley be aware that you are embarking on a business that has two separate entities. The ownership of a park is relatively simple in itself although becoming a landlord does have a steep learning curve. Have you read and learned the state landlord/tenant regulations. If not then you are considering entraining a business of which you know nothing of the requirements or guidelines. This is a poor business practice. Educate yourself before you jump off the deep end into the sharks (tenants).
The second business you are entering is the rental of homes. This is what we in this business are all attempting to avoid in purchasing and renting land. Renting of homes and dealing with that demographic of tenant is, or can be, the biggest stressor and nightmare you can imagine. Taking on being a landlord of 12 seperate homes as well as dealing with vacant lots in a community that size is no picnic and could be your undoing.
My advice is if you go forward make sure you have a significant reserve fund of cash available and sell all the homes asap after assessing the quality of each tenant.
Keep in mind going in that the quality of tenant renting a mobile is usually extremely low, unstable and completely unreliable.

Hello Frank in your formula you have annual rent cost multiplied by .6 what does the .6 represent

The .6 represents a 40% expense ratio. At 40% you keep 60% hence the .6 in the formula.