80% OF PARK LONG TERM TENANTS.
4)OWN 11 OF THE HOMES AND 3 ARE LOT RENT. $5700 MONTHLY RENTAL INCOME.
5)Listed at $370,000.00
Guys does this make sense. Please operate on this and tell me if its a good buy. I can probably negotiate on the price and its located in a great neighborhood. Talked to the owner and he made 68,000 gross in rent last year. Park is well maintained and after paying for mortgage and insurance I can make a net profit of about 34,000.
Public water/sewer? Could be significant costs involved if not.
And are you sure you want to be responsible for maintaining 11 homes? MHP wisdom says that the best way to go is to NOT own any of the homes. Yes, lower income, but FAR fewer headaches as you’re not responsible for repairs/maintenance.
I have a small park for sale in southeast Arizona. No POH, public utilities, and the park is running smoothly. Email dkshinnick@gmail.com for a sales package.
$250 per month * 14 homesites rented * 12 months = $42,000 gross per year on lot rent.
On a small park I would figure 50% expenses. $21,000 net. At a 10% cap, that’s $210,000 for the lot rent. Maybe you want to shuffle the expense ratio or the cap rate. In any case, what are the 11 homes worth? 2010-model homes might be worth $15,000 or $20,000 each. 1980-era homes might be worth $5,000 each. So $210k for the lot rent and 11 * ??? is what the park is worth (at a 10% cap rate).
If the homes are relatively nice, this might be do-able. If the homes are older or not in good condition, the price needs to come down (by $100k or more) to make sense, I think.
What is it that suggests a MHC owner should not own homes / rental units? Is it the magnitude of the maintenance on so many units that does that or is it something else?
If it is the maintenance, then what number of units could John & Jane realistically own and be able to still run everything properly?
At what point does it become advisable for a mhc owner to have their own construction crew, even if it is an on call crew?
i just bought a 97 pad park with 57 park owned homes. as i get new leases signed i dont even give them the option of staying in a “rental”. We do lease options and they do their own maintenance. If you have too many park owned homes all you have is a big huge JOB. I want out from under the park owned homes as fast as possible.
I have a 20 space park with 12 POH and 8 pad rentals. I personally like to have a nice blend. Better gross and if you stay ahead of your maintenance you will net better in the end. You have to take care of em…