My father and I are farmers in the central Ohio Market. I also work full time in a steel mill. I am a 27 yr old college graduate looking to find a way to work for myself and eventually farm full time and invest full time. We have the opportunity to purchase a 55 and older park that is a fixer upper. The park itself has 38 lots on it of which 20 are occupied. Lot rent is 280 a month and there are currently no park owned homes. The bank is willing to take a bath on it as they are into it for well over $200k and are wiling to sell at around $190k. We are able to get financing from our Ag bank using 50 acres of farm land as collateral at a %5.5 fixed rate for 30 years with a patronage refund of %1 returned to us at the end of the loan. The homes that are here now are new style homes and well maintained. We know the park needs a new well costing somewhere in the neighborhood of $25k. (Still checking on the availability of city water. The park also needs new roads in the next 5 years, The sewer system is in pretty decent shape to our knowledge. We have around $125k in cash to work with after putting limited cash down initially.
For a new guy… tips, pointers, any red flags? Is it too good to be true?
I’ll also add that over the last 35 years my father and I have owned a combined 35 different rental properties and have built a smaller but high end housing development so dealing with renters and installing infrastructure is nothing new to us. We currently own all of the equipment to do most of the work for any new construction or repairs ourselves. we are looking to use sweat equity as our main source of gains here…