I’ve been looking in my area for MHPs and it seems that many of them are overpriced and WELL OVERPRICED. 10 lots rented in a 20 unit park for $200K, 8 lots rented in a 17 unit park for $250K, etc. My part of the country is in the southeast and these are not in large metropolitan areas. What are these people smoking?
I’m embarrassed to even send them an offer of $80K or $110K. I mean, I don’t want to offend them, but the ROI with 20% or even 30% down is a negative number. They would each need to take a reduction of almost 50% off of asking price just to make it profitable.
The agent for the first park, when I told him at $200K is a negative cash flow, told me that the owner’s selling price is based on the potential. I told him my bank doesn’t loan on “potential”.
I thought it was a buyers market…?
Have any of you sent in an offer 50% or more below asking price and did you get the property?