Hi, I am a newbie buying MHP. I came across this mobile home park advertised as follows “Current use: mobile home park with 6 pads, 5 of 6 mobiles convey with property plus 2 stick built tenant occupied residences. 2 Wells & spetics recently redone.” NOI is 35000 and the asking price is 299,000 with 13% cap rate. I looked at the numbers and seems it is priced at the higher range. I was thinking of starting the bid at 245,000. This is 1 hr away from my home and seemed like a good one to start with. Can someone please advice me if this looks like a something i should pursue? I am a beginner and very scared not knowing all the details.I appreciate all the help.ThanksGowri
The park is very small, and a well or septic failure will be catastrophic. I would suggest getting the home study course and attending the next bootcamp so you will reduce a great deal of the fear and dramatically improve your chances of success. (Some fear is always healthy!) The program is a great value and without it would be like bringing your money to Vegas!All the best, Bob
When and where is the next boot camp? I would definitely like to attend!
I believe the next bootcamp is in Denver in August. You should contact Brandon for info. His email is email@example.com Take a look at the books and courses on the banner on the upper left side of this page for more info.BTW, I do not benefit in any way by recommending MHU, but as a prior attendee can say that the programs and future support is excellent! You can sign up and they will send the self study course materials which include manuals and excellent listening materials. The bootcamp is also great with no upselling!
You wrote the following:"Current use: mobile home park with 6 pads, 5 of 6 mobiles convey with property plus 2 stick built tenant occupied residences. 2 Wells & septics recently redone."I would really investigate what “2 Wells & septics recently redone” means?Thus, there are 6 pads and 2 stick built homes. Are there 2 wells for the 8 total residences?Also, how many septic tanks are there? There should be 8 septic tanks with drain lines to handle at least a 3 bedroom home per septic tank? Also, how much acreage do these properties sit on?For the wells did they re-drill the wells? If yes, how far down?Also, for the septic tanks did they just pump the septic tanks (cheap part) or did they install new drain lines (this is the expensive part)?We wish you the very best!
NO. No. No. Run; do not walk. Do either the boot camp or the home study course. That park is a mine field just waiting for you to wander in. No.After completing either of the above, you’ll look back and shiver at what might have happened if you had not asked that question here.No.
Sounds like a park with not a lot of upside and a lot of risk for some catastrophic repair bills. I agree with the other comments to attend the mobile home boot camp. It will be enlightening