Posted by Tim on February 05, 2003 at 08:15:23:
Yes, do yo know much about it?
Posted by Tim on February 05, 2003 at 08:15:23:
Yes, do yo know much about it?
Flipping Parks? - Posted by Tim
Posted by Tim on February 04, 2003 at 19:32:33:
Does anyone out there specialize in flipping parks?
I am considering purchasing a park where the owner has already been able to rehab a couple of the homes. With the current owner?s vigilance, the remaining homes have recently been vacated. He is rehabbing several parks and one commercial property. However, he has too much going on right now and needs to sell one of his holdings – he doesn’t care which one as long as he lightens his load.
I can buy his 13 unit park with minimal cash down (about $10k) assume the first mortgage of $225k (12 years into a 15 year mortgage at 9.5%) and the seller will carry a $75k mortgage at around the same rate as the first. I plan to use about $50k bringing 4 brand new single wides with shingle roofs and vinyl siding into the park. Then sell the remaining 5 homes that still need rehabbing to other investors for about $2k each and charge lot rent of $225/mo per pad. This will leave 7 park owned homes and 6 lots. The park also owns 1 house which is currently rented for $600/mo. After the park rehab is done gross rent will be $5627/mo or $67,000/yr and annual expenses of about $15,000 for an annual net of $52,000.
Finally the park owns 3 block duplexes which are currently vacant and need major rehab (everything except structural and foundations). I plan to leave these as is, but include them with my sale. Once renovated, the duplexes could easily rent for $400/mo/unit or $2400/mo total thus increasing gross rent to $95,800/ yr. If I priced this park at $600k with owner financing $400k on a wrap at 9.5%, how long can I expect it to sit on the market? If I sold without an agent, and priced the park at $500k with owner financing $325k on a 9.5% wrap, how long can I expect it to sit on the market?
I want to sell so I can pay off other properties, plus I don’t want to deal with rehabbing the duplexes. Note that in the above scenario, I only brought in new homes or sold the homes needing rehab. I’m burnt out on managing sub contractors. Also, I would still have an income stream of about $1,000/mo from the wrap mortgage if the park sold for about $600,000.
FYI. City water, septic tanks, park is in metro area of a major city with 4 million people and about 25 minutes to the city limits. 3 duplexes could probably rent for $550/mo if new owner wanted to hold out for market value.
What do you guys think? Is it a go?
Re: Flipping Parks? - Posted by Tim (Atlanta)
Posted by Tim (Atlanta) on February 06, 2003 at 19:01:38:
If you wanted to make a good finders fee, email me the particulars and I would be happy to work with you.
Re: Flipping Parks? - Posted by Diane
Posted by Diane on February 05, 2003 at 06:38:08:
Tim,
Is this park located in Georgia? From your description it sounds like a park my father used to own.