Anyone finance GREAT MH parks? - Posted by Tim

Posted by Ernest Tew on October 14, 2002 at 19:32:38:

Tim, it appears that you have done your homework and have found the park to be priced right.

Why don’t you look for an individual who could purchase the park and then enter into an agreement to net lease to you with an option to buy?

The investor could enjoy the benefits of income, growth, and tax shelter without management and maintenance responsibilities. If you pay a year’s rent in advance and personally guarantee the lease, they would have little risk.

As lessee, you could take possession and operate the business as if you were the sole owner. With rent paid in advance, you should have an immediate cash flow. If the option were held in a Roth IRA, any future gain could be tax-free.

This is our favorite approach when acquiring rental property.

Please give me a call at (352) 475-1280 if you need any assistance.

Anyone finance GREAT MH parks? - Posted by Tim

Posted by Tim on October 12, 2002 at 21:26:34:

I’ve got an 18 unit mh park under contract for 85,000.
I’m looking to get in for as little as possible but I do have 20K for the deal if the interest rate / terms are good. Please help me get the best possible financing for this deal.

I just got the appraisal. Income approach was 200K overall & final appraisal was for 150K.

City water, streets, and sewer.
Tenants pay water, electric, cable, etc.

Here is the income (yearly) 58,000
14 units currently rented at (4,833 / month)

Eff. Gross (less Vac/coll loss) = 52,200

Here are the expenses (yearly)
Taxes 1200
Insurance 1500
Garbage (2 dumpsters) 2000
Advertising 300
Maintenance 7800
Management 3600
Vacancy/Col. Loss(10%) 5800


Net Oper. Income 30,000

Debt Service 10,400
(95% financed of 85,000 at 10% for 15 year full amort.)
Yearly Pos. Cash flow 19,600

Debt coverage ration = 2.88 !!!
I’ve done a lot of due dilligence and have talked with my attorney, gained a copy of all leases, title policies, and maintenance records for the past 2 years.
If anyone can help I would appreciate it.

Re: Anyone finance GREAT MH parks? - Posted by BJY

Posted by BJY on October 16, 2002 at 23:32:22:


Sounds like these are park owned rentals?
$345 per month (4833/14) seems high for just lot rent.

Where is the Park? (state)