Price $800,000 (currently under contract for this amount).
73 MHP lots (no RV lots) located on 15 acres.
All tenant owned homes.
Lot Rent $250.
Utilities are all city (water/sewer/trash). Park pays and bills back for these.
Electric and gas are direct from utility to tenant.
The city has a population of 30,000.
City unemployment rate is 6.5%.
City median home price is $60,000.
2 BR apartment rent is $700.
The metro has a population of 500,000.
Metro unemployment rate is 8.0%.
Metro median home price is $80,000.
The park earned $75,000 in its most recent year.
Walmart is less than ½ mile away and the park is visually appealing.
I’m most concerned about the low local home prices. I would think that this would cause serious competition for mobile homes. However, I interviewed a few nearby park managers and a local banker who makes MHP loans. All said that the market was stable and healthy as far as the park business goes. I even looked at Google earth historical images and did a home count of many of the local parks. They are mostly stable with a few adding some homes in recent years.