First off, like to thank you all for such an informative forum and yes I’ve purchased and read Dave and Frank books.
As a first time buyer of a mobile home park you get kinda nervous, so I hope my question is valid.
I found a park for sell, it as 24 lots with 21 filled, no POH’s. The lot rent is 250.00 a month with utilities paid by the park owner. There is no submeters for water on the homes and the city allows submeters.
The owner pays about 27,000 a yr water bill, seems high to me, about 100.00+ a month per unit.
How do I go about submetering the home without the tenants moving or selling there homes because of a 100.00 dollar increase?
Also, there are very few mobile home parks in this town and the numbers look good, about a 12% cap rate at its present state, much higher if I submeter.
Thanks so much.