I’m new in the forum and would just like to thank everyone for such a great resource. I’m looking at doing my first MHP deal. Currently we own single family rentals but have the opportunity to branch out into the MHP world and I was hoping for some insight on the deal we are looking at.
Price: $1,350,000
Units: 55 (42 standard at $305 per month and 2 premium at $580 per month and 11 vacant standard spaces)
Vacancy: 20% (11 units)
Park Inventory: 7 MH and 2 rent to own notes (rent is 300 per month on MH and $350 for the notes)
ProForma NOI: $109,000 (same as above does not include roughly 35k in MH rent and notes)
Debt Service: $102,000
Cap Rate: (excluding MH Rent and maintenance) 8%
Owner is willing to carry $1,275,000 @ 8% interest only for three years with a price discount of 100k if cashed out within a year.
Our specialty in the single family rental arena has been to find distressed properties, rehab and rent. My background is in residential construction and feel that with some effort we could buy and fix up the needed inventory and bring to full occupancy in less than a year.
Thanks for any advice or critique of this deal.