Any advice or suggestions from you guys would help! Is this a good deal? What would you do?
I am negotiating with a seller of small12 space mhpark in louisiana. Here are some of the specifics:
Seller is asking $125,000
10 of the 12 lots are being rented at $125 a month.
All utilities are tenant paid and with city.
Street is with city.
He says is only expenses is taxes of $200 per year and insurance which he says isn’t much because he has it combined with other properties.
All homes are tenant owned.
Property is owned free and clear and he is willing to carry the note.
Park is located in a city of 17,000 people. So filling the spaces shouldn’t be a problem.
I am willing to pay his price if he accepts a low down payment and good terms.
I am planning to fill the two empty spaces with rent to own(Lonnie deals) homes of $200-$300 a month plus lot rent of $150. Adding $700+ to my monthly income.
Will raise rents to $150 a month.
I will manage park myself as it is 15 miles away from my home.
I know that I am paying a premium price for the lots($12,500 pc), but the expenses are low and I have the option to add two homes in park.
Does this sound like a smart move to make? Any advice would help…thx