First off, I am 19 and my dream for as long as i could remember was to own and manage a mobile home park. I’m currently working full time at a factory living with my parents saving as much as i can. Right now i am interested in a 30-40 space park where i can have a good cash flow and perform a lot of hands on work. Lets just say there was a park for sale for 200,000 cap rate of 10%. If i was to come up with 10% (20,000) for a down payment at 19 or 20 would a bank or seller take me seriously?
You’re taking yourself way too seriously. 19 and you want one of these places? It’s not like your life is going to end soon or anything of that nature. Get some education, see the world, chase whatever gender appeals to you, have some fun. Parks will be around for a long time but you are young only once. Besides, just how fast do you want your hair to turn grey?
I started my first company at 21, so I know what you mean. The kind of deal that you would want is an old mom and pop owner that really likes you and will carry the financing – that will sidestep the entire bank financing question. It would need to be a park with city water and sewer, and no master-metered gas or electric, since you are not in a position to write a big check if things go bad (think $100,000+). It would probably be a park that you can employ sweat equity to improve (mowing, home repair) and shows terribly initially so you can get a good price. My first park followed all those criteria – except that it had master-metered gas and electric (and both failed) – and I bought it for $400,000 with only $10,000 down and seller carry for 15 years. You will have to work really hard to find the right deal like that.