Hi there,
I came across a potential opportunity, but am not sure how to do the DD on it. Here’s the low down:
168 spaces
10% occupied
Park is bank owned
Bank is asking $650k --they have an appraisal for this amount
Park is on 20 acres
The only ammenities are a tennis court and a basketball court
Lot rent is $150/month
There is no onsite mgr, but an onsite handyman
Park has 2 wells, and lot rent covers water and garbage
The bank is willing to finance, and from what I hear they turned down an offer at $410k, but my guess is they’d take something close to it.
Bank is willing to offer extremely flexible terms
The park has been “cleaned up” there are no non-paying residents or vacant mobiles that need to be removed or repair work that needs to be done
The park currently has no website and no marketing efforts behind it
The park has a bad reputation in town–but that could be changed with some improvements as well as a name change (IMO)
How would you look at this opportunity? …Is it a diamond in the rough or just a lump of coal?
Any feedback is much appreciated.
Thanks! 