Nice 55 + Park In Florida
I fell into deal on a a park today that I might jump on to tie up until I can crunch the numbers better. 20 units currently paying only $150.00 per month each (room to raise to $250 I think) 15 empty spaces to add more units. Nice nice park. Clean as pin on nice chain of lakes. I can buy it for: net $400,000 to the owner. He owns it outright wants me to pay closing costs. More info coming tomorrow. [ Edited by Ricker on Date 01/19/2004 ]
By the way 55+ meant: adults only, not 55 units. Gonna meet the guy today and get all the numbers. This place is muntes from my house, has no real upkeep issues as it has no club house etc. The neat things is: it has city run and owned senior citizen amenities 75 yards away including a public boat ramp, huge georgous shuffleboard court, tennis court etc. The City govenrmnet maintains all of that.
People pay lot rent monthly not weekly. They are owners and very stable, clean type tenants.
I'm not sure what the point of your post is.
Are you asking for advice of any kind? As it is, it's not of much value. You may want to modify it so that it says what you were trying to say or delete it.
Yes, I was looking for an opinion on the deal. Good or not?
But thanks. I reread it today and you were right, I was not clear.
Income producing property should be purchased based on the income that it produces. USE THIS TO YOUR ADVANTAGE! Sure the seller will tell you all about the potential, but he'll have a hard time convincing an unbiased appraiser of that.
based on the numbers that you've given (I'm assuming 30% expenses and a cap of 9) it should sell for about $280,000. Get it under contract WITH A CLAUSE that if it appraises for less than your offer price, then the appraised value will become the new accepted offer price. Make sure you get it in writing that you both agree that a specific appraiser is unbiased and that you'll accept his appraisal.
Couple of other questions:
What's the current NOI?
How will you finance it? (how much, rate, and terms)
How much will it cost you to transform the unused units?
Sounds like it could be a good deal to persue.