49 lots, only 10 homes. Long time owner that just let the place go. All the infrastructure is there. Looking at doing an off market deal. A little elbow grease and move in new units I think it could be a grand slam. Potential purchase price at 300-400k. 2 miles from my home. I have had a brief phone call with owner to make sure they would even consider it. Putting all my questions in writing to get all the details so I can start running numbers. Any input would be appreciated. Thanks.
Don’t put a dime on future value “potential” or unoccupied lots. Value goes on occupied paying lots. Anything could be a grand slam, if you purchase at the right price. Upside takes considerable time, money, effort and risk. Unless this park is in a phenomenal metro, or all homes are brand new or they’re paying $500/mo+ lot rent … you’re probably around 10- 15k per occupied paying pad in a small park. 10 paying pads = roughly 100- 150K purchase price.
Note: I’m assuming this is a 1-2 star park. You can also fairly assume all of the utilities at vacant pads are completely shot. This is especially true of mom n pops who let their property go for 30 years.
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Thank you. I was looking for a little reality. Definitely a 1 star right now. Existing homes would have to be phased out soon. I will look a closer at existing utilities. Thank you for the input.
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What’s lot rent in the area? What’s the median home price for the town/metro? If it’s $150,000 you’ll have trouble. If it’s $500,000 and you can sell new homes to residents for cash/bank financing it looks more attractive.
Infill is expensive and time consuming.
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Danger Will Robinson! Danger! Unless you REALLY know what you are doing and have a bullet proof plan you will be tying up a lot of money for a very long time. I agree with @jferrari427 1000%… that purchase price is way off and you can’t be paying the seller for your effort, energy and RISK. Lot of really smart people here that can give better advice with more information on the deal.
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I am starting to realize exactly that. The more and more I play with the numbers the less upside I am seeing. Basically I would be getting 50 lots, with little income, and the existing trailers are actually a liability that would need to be replaced so I am starting in the negative and trying to dig out from the get go. My original conversation on pricing was based upon the owner throwing out a number of 20k per acre x 16. I appreciate everyone that has commented.
Let me know if you need help with any homes, I work for Legacy Housing and we have a great program for park owners, we can get new homes in the park for 10% down and we don’t need to a lot of paper work to get approved.
Phone: 850-938-9840
mylesmannino@legacyhousingcorp.com