Just entered escrow,wanted to attach PDF file,and then type a little bit,cant figure out how to attach
OK touched a bunch of stuff,in my post/reply,not sure what the result is.
Uploading… Your phone is smarter than you are,just need to know how to ask the right questions.
Entered escrow,330k,spent time talking to everyone living there.nobody had any real complaints.a $600 tenant is gone,so $2100 currently.the one nice m.h. is not p.o.h. and she has been there since 1986.two other trailers not in pics are also not p.o.h.,and are a mother son combo,mother is oldest tenure,son has never lived anywhere else(40yrs-+).not sure how old theirs are but,they are in the same general condition as the lesser ones,they are the free,de facto managers,landscaping included,i guess this is a case of you get what you pay for.house was used for the owner to visit,so now vacant and unsubdividable per county code( phone call with county planner) of 2.5 acre min.,from a 3 acre lot.my plan is to only throw about a thousand a month,increasing as I get more cash flow,hopefully I can get away with 100k ,including the house,which the owner did not want to rent as is for 1500.00 to someone,for unknown reasons.i think I will be lucky to get 2500.00 ,unless it was magazine quality,which would never be a pay back .what I think would be ideal is get a manager, in the house,paying token rent,then renting out the other rooms,for a profit(can’t embezzle from yourself)the house is set up to be like a lodge,two bedrooms&bath,living room,kitchen.then the rest of the bedrooms& baths upstairs ,above a great room, three entrances,two with mudrooms,one for both is the front door room,the manager can be separate,inside the house
At nine minutes it says it still uploading what I think is a PDF file attachment,if is not there,can maybe someone let me send them a email,so they can add it to this thread
Thank youGazelle Property.pdf (2.0 MB)
Figured I have some comments by now.
Rented out a vacant spot & the vacant trailer for 250&600.almost doubles the amount to put back towards improvements each month.after Christmas ,I will increase the lot cost,lease a soda machine.caltrans says 1006 avg vehicles pass each day.elementery school is a couple hundred yards away,with 23 kids.
Now the best part,a guy with huge money,who the previous park owner hated,would not sell to him.although money talks,so it’s only worth so much to him,to doze the place.he told me 50k over purchased price.looks like smooth sailing ,no wait isn’t that what Gilligan said
Im having a hard time understanding what you are saying on everything above but based on the ad it looks like 6 spaces rented at 250 a month? The house has some value to but it seems like you are a stretch away from a purchase price of 330k. Too small a property to have a soda machine and it will probably get pulled out. I wouldn’t count your strategy on someones word paying you more than you paid for it unless you have a contract from them with no contingencies and a sizable earnest money down…
The person that wants to buy is way above question,very well known.he wouldn’t be where he was,if he didn’t have a whole lot of class.he and his partners are the finest in the world,hands down. the beverage company loved what I had to say,if they pull the machine,no biggie ,I know how much it worked and won’t go buy my own.i would be leasing it for free,j just can’t self stock.i look at it as a free way to see if a machine works there. maybe 330 is more than mhu’s formula allows for,but in Cali , market is slimmer and with competition ,supply&demand ,somebody will be right there to do it for more(or less),I looked at like if I don’t do it,somebody else will.my accountant,lawyer and the real estate broker all can’t believe I achieved that deal.i have seen examples of Cali parks selling for 100k a spot. from my point of view,i took a house that wasn’t making me any money and traded it for a apt building and a trailer park/house,both of which can make money
You asked for advice, on a MHP strategy that is typical by people who are educated by MHU, this is not the case. I understand California is a different market but most people operate here on sound invest principles , not speculation. An accountant is not an investor, a lawyer is not an investor, and a broker only gets paid with the investor dishes out cash. Do not seek investment advice from those unqualified to give it. You said someone would be there to do the deal for more or less . I will advise that probably not more if it was an on market property for 165 k more than asking being actively marketed it is most likely not worth more.
Im not going to look at the market but I understand things change in different markets and certain mkts have lower cap rates. I posted my comment because people come here seeking advice so that for a typical park deal this is very bad.The question isn’t about making money or not. Its about definitive returns with an investment formula that takes scientific components such as cap rates, interest rates, market conditions, ROI, CoC, cost of capital, cost of funds etc as the goal is to achieve a respectable return and not just money .
I asked for comments,which could include advice.in reality I paid 80 k more than I wished.the offer to sell for 50k over was the deciding factor.i filled two more spots immediately,and have two more people to screen in the last two days.got a proposal from somebody to place 3 new ones to sell.one factor that could not get worked around was the house.see what Zillow or one of the other places says about a 4200 sq ft house on 3 acres,ANYWHERE in this state will cost.i got the park for free to cheap.i certainly don’t look at my post as a pissing contest,so my statements are not to construed as argumentative.i have gotten by in life very successfully,by anyone’s standards,so what I do, does work for me.i thought I would see some" you paid to much comments",which would preclude a lot of people from saying the opposite,nobody wishes to be outside the norm, including me.but then there is me, I say what I think and it has cost me situations and plenty of money or income.now maybe this situation too,we shall see won’t we
I think its ironic that you are even stating the fact that you paid 80k more than you wish acknowledging that the price is too high.
A house in a mobile home park is not the same value or will have the same rental dynamics as a house on 123 main street in a residential neighborhood.
I personally don’t care about your level of success. As stated , I know there is a lot of people that come to this forum to learn, i didn’t see one of the usuals jump on the post to comment and think its important that a newbie isn’t looking for a park on a quick valuation and thinking the price works for the park formula.
I wish you well in your venture.