MHP seller financing 123487

61 space MHP

28 occupied POH
33 vacant homes that need work 5K each home.
city water city sewer
monthly bills of around
park currently makes around 12000 a month before expenses.
10% down
30 year ammortization
10 year balloon
payment: roughly 1000 monthly

This park is located in southern michigan in a city with median income of 50k and housing price of 65k
good population with a thriving economy.

I know you need a lot more info to really make an accurate judgement, but based on those numbers what do you think?

You didn’t mention what the market lot rent was, but even at $200, that would get me interested. 10% down on a seemingly fair price usually solves most concerns! Questions to consider:

  • Is it currently cash flowing enough to cover the note? If not, did you build in deferred payments or do you have an instant fix to solve this?

  • Is this in the Flint or Saginaw Metro markets? Geographically, I interpret that you ruled that out, but If it is, I change my initial opinion and would insist that you be extremely careful.

Agree with @CharlesD. Let the test ad prove the demand is sufficient to fill up your 33 vacant homes. That tells me either horrible Park management or very bad local economy - maybe both…

Assuming bestplaces shows reasonable numbers on rental vacancies and not in one of the high profile cities mentioned above then wrap it up under contract.

I’m assuming this doesn’t have an 80% expense ratio for some odd reason.

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Are you planning to off load the POHs on the tenants.

61 POH. Are you buying a mobile home park or buying a rental home business?? We have never understood how a park owner would go in that direction since our conversation from other parties indicated generally they needed to collect rent every week at time of pay check or maybe never see the full amount. Parks that have no tenant ownership of homes were always a drive by for us since if you convert that to home ownership that is a tedious, costly, time consuming project that maybe the area in question is very weak for tenants to bring in new homes. 40% of question seem to have some connection with POH when in reality we understood the business of owning a mobile park was renting out space not homes.

I wonder if renting by the hour could be a good business model? :slight_smile:

I’m sorry I way mistyped. There are 61 pads with homes on them. 28 of them homes have tenants in them and they own then them. So 33 homes are park owned. Mobile home park about 5 miles down the road is at 95% and they rent and sell their homes.lot rent is way under market at 280 market rent is 350. His income is roughly 8000 a month not 12000 I have rent roll now