When looking to purchase a park should the monthly gross be able to cover expenses and a new mortgage? How do you factor this in? Example:
monthly payment $3868
NOI(based on owners expenses of 25% which we may be able to lower) – 4442 per month (this does not include rent from 5 POH as we only included lot rent from these)
Also we should be able to raise rents at least 25-50/mo ( adding 725-1450/mo)
essentially leaving us with a profit of $574 month before increases
Is the asking price to high?