Potential deal, what do you think?

mobile home university
1

Looking at my first potential deal, hoping to get some feedback. Thanks in advance!

29 lots
23 occupied
3 POH
City sewer/water paid by park
Lot rent $215
Midwest
Population <4000 down 0.8%
Metro <600,000 down 5%
Unemployment 6%
Median home price $94k / metro $77k
Market apartment rent avg $628
Walmart and new casino within 5 miles
Meijer store going in within 10 miles
Looks like homes are tight on lots, 5 acres total
Asking $339k
23 x 215 x 60 = $296,700
Potential owner financing

I don’t know the details of expenses yet, but says approx 35%. I like it, but wonder what the experts think! Is the population decline an issue? Any other issues or info that would be helpful to make a determination for putting under contract?

2

Your test ad will let you know if the demand is there - I don’t even pay attention to population anymore. See if they will provide an operating statement to support their price. Also see if the POH’s have any value - they may they may not, but the Seller may be using that to justify a higher price.

It would be good to note how much of the utilities are part of the expenses as you can offset those after you take over. Also get a handle on any upside for lot rent from other parks nearby. Once you have your plan and pro forma reflecting where you think the park can be after you’ve made your improvements you know if it’s the right deal for you.