I Need Your Help Please
Never considered a park but this one came about.
62 space with him owning 55 trailers 4 vacant and 3 squaters. Older park in kinda rundown area. Wants 850k. Rent brings in 18k a month and exp run 7-8k. AT 20% down, finance charges run about 6k. Another smaller park 19 spaces he owns 15 with 3 squaters and 1 vacant. Brings in 4500 month with 1700 in expenses. loan 1294.
Is a park with homes a major disaster for repairs. How about insurance, liabilities, tenants in general. Any help on this desicion would be appresiated. Any questions I should ask the seller before I start negotiations?
Thanks in advance for you input.
I have NO experience in this area but know of a guy who has made millions off of rehabbing mobile home parks and making them desirable. He has often had the appraised value nearly double in 6 months just for a little work...or rather a lot of work but little considering the return!
This is a niche market so make sure you know what you are doing before you get into it. Sorry that I'm not more help but I'm sure someone here can share specifics.
I am looking at a 22 unit all park owned for 250k. What you are getting into is not a park per se, but a horizontal apartment complex. If you are comfotable with the landlord portion, it can be a cash cow. It can also be a headache. Price sounds ok though.
Good Luck,
Shawn(OH)