I recently put a park under contract (previously I’ve invested in multifamily), and am looking for any insight into whether I’m walking into an okay purchase. My biggest concern is after talking with a mover who is familiar with the park, he stated that he wouldn’t pay much for it since the lots are small and difficult to find homes. I’ve listed some info to see if anyone has any recommendations.
-Center of Iowa MSA area with 500,000 population
-67 total Lots
-4 park owned homes
-59 lot rent only (some with notes)
-$20,015 in monthly income from lot rent
-$770 in monthly contract income (not sure of term / length)
-$6515 in monthly expense (33%)
-City water / sewer… landlord pays only for water/sewer.
-Asphalt in back section of park has some potholes.
-Built in 1958
-Elderly park (not designated as this though).
-Room to add 7 additional lots (any idea of the cost per lot for scabbed on additional lots using propane?)
-Majority of lots could only fit 60’ homes, although there are some that could fit 80’.
-30’ width from center to center of lots
Would the lot sizes be a major deterence to value? Any suggestions for estimated value? Anything to dig into further?
Do you have a rough idea on cost to move lines if needed for a larger home?
Any help would be appreciated.