I have been reading the archives and I swear, ever since I read about your 26 lot L/O deal, I’ve barely been able to sleep at night!
For someone like me who is just starting out, with little resources besides my time and my brain, this just lit a fire under my you know what!
My question to you or anyone else who has done a deal similar is…
Is finding a deal such as yours a once in a lifetime homerun? Majorly getting lucky? Or, is this something that is likely to be able to talk a seller into?
I am still reeling at it all; for a thousand bucks, that one deal is more than enough to live on.
If it is like finding a needle in a haystack, congrats to you!
I have looked at over 20 Parks since inking this one and i have had these in the works:
76 spacer with 23 empty and 41 park owned homes. Lot rent 225 for the twelve paying lot rent, 600 rent for typical 3/2 singlewide, 10% vacancy. grosses about 28K per month, expenses 12K (24K per year manager). Wants 2m for park I want a 12K OC Paymnet and lease payment of 8200 per month. This will give me about 6K net…beauty of this deal is i probably would NOT bring in more homes…collect 5-6K cash each month for 7 years on a 12K investment.
55 space 53 park owned 70-80s singlewides. This park has dirt roads and nasty homes but gross rents are 16.5K and never a vacancy. Expenses are 4K per month (their figures). Want 800K cash or 1.2 contract but is very interested in a 4K OC and 6K per month lease inc 1/12 of property taxes. insurance is not required or presently being utilized. These folks never clean units between rentals and most are plywood flooring only as floor coverings…I LOVE this park!!! Would net me 5-6K per month with a 4K investment.
These parks are out there. 2 of my friends have picked up very nice parks with less than 30K OC (option consideration) and killer net cash flow.
I was offered 150K from an investor from this board for my L/O on the 26 spacer…
I look for and target parks no one else wants, full of park owned homes!
Thank you so much for your detailed and thoughtful response!! I just wanted to point out that you are not as average as you say =)
You gave me a real boost in attitude that I really needed right now. I seem to be surrounded lately by a lot of people that think nothing great is possible, “especially in these times”. I think they are right, nothing great will probably be possible then… for them…especially if they don’t go looking!