Hello Again! The owner of the following MHP contacted me the past week, asking if I am still interested in purchasing the Park. This is not a Turn-around Park. It is immaculate. It is located within 10 miles of my home. So it would be very convenient to manage. I explained to the owner that considering the vacancy rate, that I would not be able to give the $1,100,000.00 asking price. They are somewhat motivated sellers. Owner is over 70 years old and wants to retire.
Purchase Price is $1,100,000.00.
81 Occupied Lots @ $105.00
34 Vacant Lots
76 Septic Tanks
1 Main Water Meter - Monthly Expense $1,600.00
Liabiblity Insurance - Yearly Expense $2,000.00
Land Tax - Yearly Expense $2,800.00
Outside Utility Lights - Monthly Expense $ 200.00
Yard Mowing Expenses - 1,000 monthly (Due to all vacant lots)
No Park-owned homes.
Using the 60/30 Rule I came up with $617,400.00.
I am familiar with sub-metering water. I should be able to install within 2 months.
Surrounding MHP Lot Rentals are $125.00 - $150.00 monthly.
I am not a master negotiator. Do you guys have any ideas for creating a deal??