MHP for sale Kimball, Nebraska - Posted by Chris Reuman (Maine)

import · November 12, 2007, 2:32pm

Posted by Berno on November 21, 2007 at 11:53:55:

You are crazy…

import · November 12, 2007, 2:32pm

Posted by Chris Reuman (Maine) on November 12, 2007 at 15:32:05:

Hi everyone. Sorry I haven’t posted recently. Recently, I ran across this deal on Mobilehomeparkstore.com. I don’t live near Nebraska and have nothing to do with it, but this seemed like a deal worth looking into.

Here it is:

Mobile Home Park For Sale In Kimball, Nebraska

Ridgewood is connected to city of Kimball (pop 2,500) water and sewer. The park layout is 76 mobile sites and 54 RV sites. The park does about $80,000 gross with $20,000 being RV rental income. Currently 18 units full time. Rent rate is $225. Expenses run about half the income. There is a 3 bedroom home separately deeded on 2.4 acres that is included. The park is about 24 acres. The park is run by a manager who would like to stay. There are three older trailers that park owns also transferring with the park.

The guy just e-mailed me with is new lower price of $450,000.

Here is the actual address: http://www.mobilehomeparkstore.com/p4sale/ne_kimball100.htm

I hope this turns out to be a good deal for someone looking to own a mhp. Best investing, Chris Reuman

import · November 14, 2007, 5:00pm

Am I crazy or… - Posted by Dr B. (OH)

Posted by Dr B. (OH) on November 14, 2007 at 18:00:15:

is this way off the mark?

When I calculate the cap rate for a park priced at $459K with a stated NOI of $6963.08 per quarter. I get:

4 x 6963.08 = 27852.32/459000 = 6.06% cap rate.

Not that I’d necessarily buy on cap rate but it is another yardstick to use. 6% seems a bit skinny for those of us taught to “buy right” to make your money.

Steve

import · November 12, 2007, 8:24pm

Re: MHP for sale Kimball, Nebraska - Posted by Rick (CA)

Posted by Rick (CA) on November 12, 2007 at 21:24:36:

Hey Chris,

Thanks for the lead. Looks like about a 8% cap rate, not something to make me real excited. And the RV part is also what I would consider a weakness.

I’m currently looking, but there are so many 10-12% cappers out there that there would have to be something real compelling in this deal to make it worth it, like maybe a good cash-on-cash return with the seller doing some attractive financing.

Thanks again,