Why Moving A MH Matters
I recently spoke with a person who works with a lender involved with mobile homes. One of his key questions about our 2004 double wide was whether or not it was a new home when it was moved to the property it now sits on. I asked him why that was significant, and he kept changing the subject. Can any experienced MH people clue me in as to what he was getting at?
probably because he is looking for one that will qualify for 100% Rural financing (to owner occupied only and mobile units have to be recently new when they were moved to the property to qualify...2004 may be too old
Yes, I agree and 2004 is very old and one need to require some recent years that are necessary.
Quote:
Likely Purchase Price: $150,000
Owner will finance up to 70% but I think he will do 80%
Mobile Homes: 100% occupied. 9 MHs(7 owned by Park, and 2 pads rented ) all of various ages, but all of them look VERY old (probably 1985 and older) 2 pad spots could have their rent increased by around $50 each.
Annual Income: $35,640
Annual Expenses: $15,982 are these accurate
is the infrastructure up to code? Sewers, power , internet (additional revenue)
Est. Debt Service: $15,280 (10 year note at 5%)
can you et 5% for a MH?
Annual cash flow: $4,378 on a 150K investment?
Not a lot of cash flow for a MH park, but the appealing things about this deal are:
1) the location is above average
2) the 10 year Am schedule will have me paying off almost $800 in principal the 1st month.
3) Ability to up the lot rent on the 2 pads and put 2 of my own MHs and rent them out
My biggest concern is the age of the MHs but I have a fantastic/cheap property manager that does a great job (there are some out there : )! )
Any advice/comments would be greatly appreciated.
What is the potential to rezone the land into commercial or residential?
<font size=-1>[ Edited by wgaston14 on Date 04/20/2009 ]</font>
It will be even much better to buy mobile home park if getting in such costs. It will be better to get the info and worth beneficial in every terms.