Okay, I just made it into the town I am looking to buy a mobile home park in. I am looking into meeting up with a lawyer tomorrow. I would like to see what different purchase contracts people use and also what different MHP rules people use to run there parks.
A quick run down on the park I am looking at is a small 22 lot MHP.
I called the city and spoke to the people in the planning and zoning and they said that it I can bring in and out mobile homes but I can not expand the MHP. He wasn’t to fond of MHP.
The MHP currently has 21 Mobile Homes
13 on lot rent $120
6 Park owned $325
Rent hasn’t been raised in over 10 years
Competitions Lot Rent $200~215
I plan on raising the rent instantly to $150 upon aquiring the MHP and then slowly increasing the rent $15/Year until I get it close to my comps
Restraunt on property
Maintence free 10 year locked in renewable lease on its 2nd year
Located in the major metro area but on the declining side.
Demographics via bestplaces.net since 2000
I talked the deal to go in contract seller financed for 150k
50k down and 100k financed for 4 years at 4.5% interest
Net Operating Income
I have until christmas to complete me due dilegence period and expect to close by New Years.
I read and reread through the 30 days of successful due dilegence and now I am putting it into practice.
The disc that came with the book I can not use as I this HP Envy M6 I bought has no disc drive.
Also, I prefer to get a loan through traditional means via bank.
I am easily preapproved of home loans over 250k with the income I currently have yet commercial property is different on how the bank will determine if they will write me the loan.
Problem with getting this financed is that it was ran by a chineese couple in which they mostly collected the cash themselves and didn’t manage record keeping. The husband has passed about 2 years ago and the wife finds it difficult to manage due to her not being profecient in english. The tenants are not on leases either.
Can I get the bank to finance maybe the sale of the land to me, the assessed value or what can I do to get it financed traditionally and possible come out of pocket less or extend the loan term longer then fast ammortization.
Also, the park being in a different state and a 6 hour drive from my residence how do I find a good accountant and lawyer? Also, should I use a property management company to get things on there feet or try to continue to use the current person who collects the rent for the owner and gets the parked own homes rented out?
These are all different things that concern me at the moment. If you can give me different opinions on the different aspects that will be great.