Farm Land With A Trailer Park Foreclosure, Is This A Bargain Deal Or Trouble?
This property is going for court house auction:
Two tracks of land total 89 acres in rural area of Texas, most of the 89 acres is farm land, but 17 acres of land is zoned as 'commercial' because it has been used for trailer park (mobile homes). County records shows there had been once total 30 mobile homes parked, but I visited the site and counted only about 20 there. There are about 10 mobile homes still under the previous land owner, but mostly (if not all) already fell down or unlivable. There are about 6 or 7 mobile homes in the park looks decent, but there were owned by tenents who just rents the lot space in the park for $250/month. District appraisal value is $441,000 and auction starting at $350,000, I have no experience running mobile home parks, and I don't know how easy to do the clearn up job and bring the park to a nice shape. So my questions are follows:
1) After foreclosure auction, as new land owner, how easy to obtain new/replacement lease agreement with the tenants already in the mobile home park? If old tenants does not want to sign up a lease with me, what's the process to ask them move out?
2) Is cleaning up process costly for already fall down / unlivable mobile homes?
3) $350k as starting bid price v.s government appraised value at $440k, is this a bargain or this is too much trouble for an average investor?
Appreciate your sharing ideas and suggestions.
Thanks!
For an average investor...ie doesn't know the answers to these questions, Run don't walk away unless you have cash to spend. Disposal is tough, knowing the "lay" of the land is real tough if you are unfamiliar with the nature of the business.
Good Luck,
Shawn(OH)