I am negotiating on a park and would welcome your thoughts!
It is 10 spaces and a brick home. The home needs major work, including a roof leak, cracked slab (maybe), trash everywhere… you get the picture. Most likely $10k or more to fix it to be livable. Once that is done, could easily rent for $700-$900 a month.
The 10 spaces will get about $200-$225 a month lot rent. There is one tenant now. 4 homes need to be removed, they are too old, too small or in awful condition. They could be replaced with any size single wide homes. Double wide would not fit in these areas. You could most likely fit 2-4 double wides on the property, not of the longest size. The owner tells me there is one well and one septic tank. I tend to believe that is not the case. Yet, the owner does not really know the park well. City water and city sewer are to the street of the park and might be able to be hooked up to. I have to check into this in more detail. The main road is paved and needs work. The landscaping is some grass. No curb appeal.
The area is old, established, working people. The street is mostly clean in decent condition. This property is the worse one on the street.
The owner was asking $175k. Has agreed to carry $70k and take $20k down. There is also $10k in back taxes. She wants to give me 6 months before the 1st payment of $1000 is due. I had asked for 18 months. These will be no interest.
If the bad units were removed and newer units replaced them, they would rent for $625 or more a month.
The house fixed up would easily sell for $80k - $110k. It is a large home with a basement and a huge carport/patio.
Please let me know what you might do with this deal and if you think it should be “sweeter”?
Thanks in advance for your thoughts.