So I just spoke with a seller about a park in Andrews, SC. The MSA is a rural area with only about 61,000 people, but it’s 50 min. from Mount Pleasant, SC (Charleston area) and Myrtle Beach. Park pays water and it’s on septic
Numbers we talked about would be about a 12CAP.
Would you buy this deal or avoid it like the plague?
The MSA median home price is a solid $200,000. I’d put it under contract, get more information and come back with the complete story.
The only other thing I’m skeptical of is that there is one guy who owns 6 trailers and it’s a 30-space park.
That could be an issue with bank financing since they typically don’t want someone owning more than 5% of the homes. It’s a bit more than you would like but may be angle for owner financing.
Factor in the price to buy that guy out of his homes and recalculate. It’s probably still a good deal so you should tie it up pretty much immediately. All you have to do is buy those homes in conjunction so just make him a fair offer based on NADA values or below and close it all together. Should solve the bank issue.
Thanks Charles!
I’ve listened to a bunch of you and Kevin’s stuff, and heard you both talk about offering $3-$5k for POHs. Do you think that would apply in this case?