Hello! New to this forum. I have been pursing a park from an older lady for years, but she has always backed out. She is now 80 and is asking $385,000 & won’t budge on price. There are 13 homes, 2 of those homes are park owned. There are 28 pads, but I think only 5 or 6 could accept more homes and the rest are in need of major repair. Monthly rents are $4,200. Monthly costs (taxes, insurance, mow/snow, park lights+trash, manage+annual license fee) run around 1,000. On city water/sewer and the utilities are charged back to tenants. The driveway was recently repaired, about 2-3 years ago and still looks nice. She had some work done on some of the park plumbing system, but hasn’t repaired all of it. She basically repaired what was causing the most water loss. The manager says that the main meter and submeters match now. Do I take this deal? Or run? Thanks!
Before I got into chattel lending I spend the past 5 years underwriting MHC deals and I’d need more info to give you my honest opinion.
Some things to think about:
What’s the current monthly pad rent? How does pad rent at this community compare to the pad rent at nearby communities?
What’s the avg cost per pad to bring the rest of the pad sites online?
What else needs to be done to the plumbing and what’s the estimated cost to you and is there anything the city will fix?
Have you ran any test ads to gauge infill demand?