Hi im wanting to buy my 1st mobile home park near where I live.I need to know how much its worth and who owns it.The park can be seen at google maps by typing 117 mountain ash lane,olin,north carolina 28660 then click satelite view.Id greatly appreciate any help you guys give thanks in advance.Also I tried looking up value on loopnet but I cant find name of park or actual address of it.
What is the number of occupied lots, the lot rent, and who pays the water/sewer bill?
17 lots with 5 vacant 2 of which are condemened trailors.Lot rent I was told by one of the tenenats is 130 dollars.NO ONE will tell me name of owner.It has only 8 homes that are rentals then 4 are owned by the tenants.The water bill and sewer are payed by the tenents theres meters in thier yards.I did not get any names but one of the tenants said the same people has owned the park since the 80s.I hope they will listen to my offers at least.But Im trying to get an experts take on the value of the park before I make any offer so I know I wont be getting screwed and pay too much.
10 occupied lots (that’s my assumption based on what you said) x $130 monthly lot rent x 12 months of the year x .5 (50% expense ratio) x 10 (for value at a 10% cap rate) = $78,000. So the park is worth roughly $78,000 plus the value of any park owned homes. But that’s not the whole story. I would not buy a park this small and with this much vacancy at a 10% cap rate – you should be hitting more like 12% to 14%, so I’m going to say the value is more like $50,000 plus the value of the homes, if any. And even then, this park better have city water and city sewer, and no master-metered gas and electric, or I would not even give it a second glance.What would make me more interested in this deal is if the lot rent in the market is $300 per month, and the park is at $130. But even then, the size of the park dampers my enthusiasm.I have owned a 15 space park before (Hidden Hollow, Lake Worth, Texas) and the problem is that a single drive to visit the park probably knocks the net income down by 5%. The exit strategy on a park that small is extremely limited, as are the financing options.
Thanks for all your info I live 5 miles from it.I was wrong about the lot rent its 180 Just got that clarified.
If you plug $180 into the formula, you’ll see that the value would be more like $100,000 at a 10% cap rate, but everything else still holds true.
So I agree with Frank on everything he has said- but if the park is 5 miles from you maybe it gets a pass on size. A small park can be a great way to get your feet wet. While I would not buy a park that small, or that close to where I live I understand why some might want one close and small. I talked to a guy close to where I live and his park is about the same size as the one your looking at. He loves it. The size does not overwhelm him, he manages it from his home. It provides great cash flow and he does not intend to sell it- it is a keeper. So if the owner might carry the note, and the numbers work, and you can really get a good CAP- like the 12 or 14 Frank mentioned… well it might be a good deal for you. If you can find homes to pull in, and you can rent them or sell them you. Anyway- filling the spaces might add $75,000 or so tot he value of the park on space rent only. If you can recover your cost through selling the homes or renting them, that is not a bad return. The space rent gross is like $15,000 per year, figure another $15,000 in rent or rent to own contract payments… I do not know you- or your skill sets- but for you- it might be a great project that provides close cash flow. Frank used the word ‘dampened’ and I can understand that use of the work… like Frank I know if a park is too close it sucks my time, and I have invested in a job… so the warning is- the park is small, hard to finance you will be be the manager, maintenance, legal etc… good luck with whatever you decide to do…
Ok now i went to loop net and found total market value of the park it dropped to only 66,000 from 2012 to 2013.Heres the property on loopnet.com LoopNet: #1 in Commercial Real Estate for Sale & Lease states the OWNER of the park is iredell statesville schools LOL,It used to be a couple now its a school system??? I need someone to clarify this.I wanna buy this free and clear the woods behind the park has a dirt road that I take my shih tzu to walk all the time and my uncle wally has his own truck shop beside the park as well so Id be delighted to own this place.But,Can you guys tell me who the owner is by going to loopnet and entering the parcel id all info I got was a school system supposdly owns it.
also heres another link to the park check at 2012s value to 2013s value it dropped from 253,000 to 66,000,heres the main linkhttp://www.loopnet.com/Property-Record/JENNINGS-RD-OLIN-NC-28660/BdC6irT1w/Owner-Mortgage/?SRID=3281864483
should I call iredell statesville schools and make them an offer on this?
Sure, why not?
I would call the County Assessor. Trying to find someone competent in a government school system to discuss such an asset could take days. The Assessor will know where they send the tax bills. They will know who actually owns it. They answer questions like this all-day long. Shouldn’t take more than 5 minutes on the phone with the Assessor.Your mileage may vary,-jl-
I just found out the owner wont sell it,heres the correct loopnet mpid 18021230http://www.loopnet.com/Property-Record/JENNINGS-RD-OLIN-NC-28660/BdC6irT1w/?SRID=3281864483maybe one of you guys can talk him into selling if you actually wanted it
LoopNet: #1 in Commercial Real Estate for Sale & Lease says its worth 253,000,How much would you guys pay for it???
If he’s not selling, there is no point in trying to convince an owner to do so. Your time is better spent focussing on MHPs where there is an impetus to sell. The reasons most MHP owners sell (and owners of most any type of property) are:1. Death (or serious illness)2. Divorce (or other financial pressure)3. BoredomOf these, the first two are the most compelling and urgent. But if your seller suffers from none of these three, then he’ll just keep the MHP until one of them sneaks up on him. Don’t waste your time. Find a seller who is actually ready and even motivated to sell to you.-jl-