First time poster looking for some help with this example (questions at the bottom). I know it’s a lot, but any feedback would be greatly appreciated. Hypothetical Park Eval:MHP Price - $450,000
Size – 4.2 acres# of lots – 30
Lot rent - $175Occupancy – 90% (27 of 30)
Year Built – 1985Water and Sewar – City (Water paid by tenants)
Park Owned Homes – 8 @$350/mo avg (6 single/2 double wides)So running my made up numbers, I get….
Gross Income – $73,500
Operating Expenses - $32,500 (44%…Includes onsite manager)Net Operating Income – $40,000
Other Info – Park rents are on par with other similar parks in area. So my questions…
What details am I missing?How would you value this park off of the given numbers? How did you come up with the evaluation, and what do numbers in
How much of a down payment would I need for a bank loan?How are normal MHP loans worked(length,rate)?What would a bank’s criteria be for approving me for the loan?Should I go another route for loan?
If I don’t have enough for down payment, are there other ways of
getting dp and still making deal worthwhile?
Also, if there are other
questions that I should be asking feel free to include. Thanks.