Hey everyone-- so glad to find this forum I’m sure this question has come up before… sorry if this is a major repeat (and if it’s a dumb question in general
We’re looking at a local park that appears well-priced for the current cashflow but has several issues that make it difficult to structure a proper offer.
**About half the homes are park owned and rented out with 100% occupancy at excellent rates for the area. This drives the cashflow up-- way up.
**Lot rents are low-- on average $60-70/month less than others in the area. So— if rent from the park-owned homes is factored out and only lot rent is considered, there’s no way the bank will finance anywhere near the asking price
**Also, we like to sell the homes with owner financing, but— if the bank factors in the homes when structuring the loan, won’t we be unable to sell them until the loan is paid off?
**Property taxes for this park are sky high already (this is TX-- argh If the park sells at almost double its current valuation (confirmed on the county website) won’t the taxes also double? If so, that alone would make the park much less desirable cashflow-wise. How do you handle something like this during negotiations?