Talking with a gentleman about a park he is looking to unload. The details are 39 lots, all have trailers, with 36 rented, average rent of 400. The park is part of a larger community of 380 trailers located in a small town 30 minutes from a city of 600k.
He is 70 years old and ready to rest, and spends 20 hours a week in the park. I do not like all POH but am only 30 minutes away, this would be first park.
Thoughts …
Without knowing anything about the utilities, lot rent, etc. it’s hard to say. But I don’t see any deal-killers so far. The POHs can/should be put on RTO contracts. You can probably sell most to deserving families over the next 3 - 5 years and me (mostly) out of the home business. Run test ads advertising the homes available for RTO with at least $1,000 down and $500+/month and see how many calls you get. (Turn over the leads to the park owner to follow up so you don’t leave people hanging…)Tell us more about the park, and we’ll be able to tell you more,-jl-
Thanks for the feedback Jefferson. I have reached out to ask about utilities, however I travel by be area on the way to my sons school and am almost certain the utilities and sewer are city. This is a big community for this small town.
I feel like this is a good entry park due to the closeness. Pulling 12k plus a month out should allow me to build up a good safety net, I misstated earlier as I think there may be a couple of empty lots I would like to fill.
I asked about age of the homes and be said all ages, by he did say all were in good condition. Apparently he does ALL the maintenance and this may pose a problem for me. I can do minor things but no a/c or others similar jobs.
I plan to visit next week as he wants out bad, and I may be able to use to my ad advantage.
Thanks
That sounds quite common - that seller’s self-manage and self-maintain the parks, and expenses are artificially low. Be sure you get a real handle on what the management costs will be (probably 5% of gross) and repairs & maintenance (5% - 25% depending on number of POHs).Good luck,-jl-
Jefferson … Would you be willing to answer a few questions in a more private setting. I follow your posts as I see you very active on this board. If so, you can provide me with contact info at deanstringer99@gmail.com.
As a side note, I signed up on your site yesterday to investigate in investing opportunities.
Best regards …