Buying Mobile Home Park... Need Help & Advice!??!
Hello! I am currently negotiating terms for a small MH park in WA. This park only has 8 homes, 2 of which are park owned. It is 100% occupied, renters have lived there from 5yrs to 31yrs. Built in 1972. Asking price $135,000. Current rents total $1650. Owner was going to carry contract, then backed out. Any ideas or benefits for him, to change his mind? What are other financing opitons? What do I look for or watch out for buying a MH Park? 
Price seems high compared to cost of land in area, but still has positive cash flow...wise? Thank you for your help and ideas!
[addsig]
Make sure your NOI (Net operating Income) warrants the purchase. Also check for code violations, or problems that will need upgrading soon, like plumbing or electric. Get a current rent roll and current expense sheet and double check the arithmetic. After all of that is done, you will be able to make an informed decision.
MH Parks are simple if the cash flow works then the park is a good buy. Make sure you can get financing for it usually 70% of appraised value is the normal lately to get financed. If the buyer decided to not hold paper on it then I would have him lower the price.
Good Luck,
Kyle
Seems like a narrow deal to me. The numbers will be close, but a lot more information is needed to make a suitable profile.
Perhaps you can talk to a few lenders about your profile, and get the max they'll lend against the park. Use that information to inform the seller that unless he happens across a certified rich guy, that he's definitely going to be carrying some paper on this deal.
I've found that after I've talked to sellers on behalf of the buyers I'm financing, that they were basically posturing to push the buyer to get the absolute most they could in financing so that they wouldn't have to carry as much paper.
But in all cases, the sellers always carry some portion of the transaction.