Mobile Home Properites Good Or Not
I have been offered an opportunity to purchase a mobile home park with 100 trailers on 20 acre( with 10 units vacant) for 1 million. Supposingly appraised at 1.1 miliion. the property is 3 hours from where i live. Seller is reluctant to do some financing but not completely set against it. the thing is i know nothing about mobile homes, but i hear they are good investments. Also there is a duplex on the property with one vacancy (need some repair) annual income $150,000 , I guess, i still need maint fees , taxes and other expenses to find out if this is a good deal or not. I go to see the property thursday. any advice will be greatly apprciated.
thanks
joe
Where is this property located?
Did you buy this park? I am looking at the same type property 101 spaces, 1.8 million, 280k gross income. I have experience in duplexes and single family homes...not mobile homes.
This has always been a personal investment dream of mine - however it has been pointed out to me that a MHP can be very labor intensive. The only way to avoid that is to have onsite prop. mngment. - Before you can figure out a resonable price you must know what you are able to collect in rents. Get verifiable statements. Also, the units themselves, if older , will eat you up with repairs as the parts become obsolete. The Best idea, in my ever so humble opinion, is to operate a park where the units are owned and you are just renting the land. But, then we go back to the labor intensive part....
Yes....I think your analysis is sound. I would do that deal here in NJ for 300-325K except in NJ the asking price would be 595K and the taxes would like 14K ....that is why I got time to read this board ! Good luck!
How is the closing cost determined? Is it a percentage of the purchase price?