any suggestions on this park?? - Posted by chris flynn

Posted by John/Indiana on March 14, 2001 at 17:51:43:

Have the electric/sewers/utilities checked in the park.I’ve found an affordable park…but it needs EVERYTHING FIXED…so I passed.Seems the reason for half vacant & old decrepit units is because its just outside city limits.Inadequate well…septic overloaded.Due to get new sewer /water from city next year.Big bucks…As owner becomes more motivated,I may rethink,but the repairs will cost more than he’s asking! Duh!!! Sadly,with some work,it would be nice,but nearly every unit there,occupied or not,needs replaced,except 3 out of 60,lol.Now as for the potholes,junk cars,junk trailers…do you know how to get rid of junk trailers? LOL.Sorry,had to throw this in,needed a laugh.John.

any suggestions on this park?? - Posted by chris flynn

Posted by chris flynn on March 13, 2001 at 21:35:46:

Hi everyone-There is a mobile home park in a small community with 36 lots -20 lots rented at 75-85/mth. The noi us 15,688, they are asking 175,000. The park is in very good condition. It has city water and sewer. There are 40 acres in back, not included in price. The cap is 9% (if i did it right). The lot sizes are 38 x 98. We have read Lonnies books and and Ernest Tews “getting rich”. We are interested in getting a park (eventually)-what do you all think of this one? What other books do you recommend for learning about parks? Thankyou-the message boards are just great and so educational. chris F.

Re: any suggestions on this park?? - Posted by GregVa

Posted by GregVa on March 14, 2001 at 07:14:47:

Ray Alcorns book,Dealmakers guide to MHP’s,is a good book to read.He gives good info to evaluate a park and due diligence that needs to be done.As far as the price on the park it seems high for the NOI but it looks like there is possible upside potential.What is the reason for the vacancies? Can the rents be raised? What expenses are figured into that NOI? They are some questions that I would like to get the answers to. Hope this helps some. I’m just a newbie at this myself, so I’m sure you can get some more good info from other folks here.
Good Luck

Re: any suggestions on this park?? - Posted by Chris F.

Posted by Chris F. on March 14, 2001 at 17:38:18:

Thanks Greg for responding. I will get Ray Alcorns book. Don’t know why the vacancies and the rents are standard for that area. The expenses are garbage pickup,maintenance, insurance and property taxes. The 2000 income statement shows a 500 incurance for hookin up remaining lots to city water,sewer. Thanks again for following up.
chris f.f