What interest rate and what price can you pay to buy homes to fill lots in your mobile home park?-gc

I have been working up some scenarios on what would be a reasonable interest rate to offer an investor that wanted to put up money to loan to a mobile home park owner to buy homes to fill up vacant lots.

My initial thoughts are that the park owner that had mobile home lots that rent for $150 per month (net of expenses) could actually pay anywhere from 12-20% on these mobile home notes (depending on the cost of the homes) and still come out very well.

I am attaching a spreadsheet that shows several scenarios - note that there are tabs on the bottom showing what the change in lot rent has to do with the price you can pay for a home and also the amount you can pay in interest on the home loan.


Dave Reynolds