10 mobile homes & a duplex... - Posted by Mark

Posted by @sc.rr.com"]Mark on March 02, 2004 at 10:29:18:

Sorry guys - you’re right. I don’t have enough information yet. My friend just called yesterday…I’ve only done a drive-by at the property…and I haven’t yet spoken to the owner. BUT - based on his $170K asking price, I thought it definitely worth looking into. The location of the property is just off a major 4-lane highway and one block from the bus stop. It’s also a block or two off of a ‘not-so-great’ area, but it’s not a war-zone.

I’ll provide more details when I have them. Thanks Gregory & Tony for your replies so far!


10 mobile homes & a duplex… - Posted by Mark

Posted by @sc.rr.com"]Mark on March 02, 2004 at 06:24:48:

A friend called me about an ad he saw for a small home home park. The property has 10 mobiles on it plus a large duplex. Here’s the breakdown:

8 mobiles leasing space (making lot paymts $175-200/mo)
2 mobiles owned & rented (around $400-500/mo)
duplex rents for $700 + $500 (1/2 rented today)

I know very little details at this point but was wondering your thoughts on it. Property is generating $3400-3800 gross income which would definitely cover debt service. Owner is an out of town, 80 yr old man. Son says he just wants out of the game. Tired of driving an hour plus all the time.

Any thoughts or help would appreciated!


Update on the property… - Posted by Mark(SC)

Posted by @sc.rr.com"]Mark(SC) on March 10, 2004 at 11:39:48:

Well, the owner is from the old school and will not share information about the property. No rent rolls…no expenses…nothing. The man’s son is attempting to sell the property for the father and he understands the difficulty. He said he’s selling the asset and not the business. He’s not interested in owner-financing of any kind and most lenders will require more than he’s willing to provide. I told him good luck with the property. If he changes his mind, let me know. Next!

Re: 10 mobile homes & a duplex… - Posted by Gregory V.

Posted by Gregory V. on March 02, 2004 at 08:40:35:

As Tony mentioned, we definitely need more info to give you accurate advise.

However, I will throw out a ballpark figure based on my calculations.


  1. 8 Mobile lots rented for $187.50 each.
  2. 2 Mobile homes rented for $450.00 each.
  3. 1/2 Duplex rented for $700.00.
  4. 1/2 Duplex rented for $500.00.
  5. You are using traditional financing, getting a 20-yr amortizing loan at 7% interest.
  6. You are able to put 20% down.
  7. Assuming everything is rented out (if this is not the case you should adjust the numbers down slighty), grossing $3,600.00/mo.

Assuming all of the above is accurate, and if your goal is a 15% ROI, you should offer no more than $269,000 for the property.

Of course, if you’re able to get non-traditional financing and have the owner take back a note, then the numbers will change.

Let us know how much the owner is aking, how much monthly revenue the park is generating, how many vacanies he has, condition of the mobiles and how you plan on financing the park and we can give you better advice.

Re: 10 mobile homes & a duplex… - Posted by Tony-VA/NC

Posted by Tony-VA/NC on March 02, 2004 at 06:56:05:

Mark we would need quite a bit more information to give an educated opinion here. Just assuming the “Property is generating $3400-3800 gross income which would definitely cover debt service,” is a poor analysis to move forward with. Sure it may cover debt service but what is the debt? What is the asking price? Are they willing to owner finance?

Do you want to make enough money to not only cover debt service but expenses and profit too?

Of course you do but without any further info we cannot help you much. It would be like me describing some old parachute I found in abandoned attic. I could describe it to you a bit but would you feel comfortable jumping out of a plane with it strapped to your back?

I am assuming you would want to take a closer look at the parachute and the park.

Let us know what you find out and we will be happy to help.



One word of caution, sellers often value stick built properties (such as the duplex) differently than the mobiles and as such can through off your figures quite a bit, but let us know what you find out.