My first MH Park - What to look for - Posted by Ben (FL)

Posted by Tim Fierro (Tacoma, WA) on October 18, 2002 at 24:54:53:

Physical look inside and her deed to you if you like the condition.

My first MH Park - What to look for - Posted by Ben (FL)

Posted by Ben (FL) on October 17, 2002 at 12:27:04:

I’ve been buying and selling SFR for 4 years and have always avoided Mobile Homes. Yesterday, though, I got a call on my “Ben Buys Houses” ad from a new investor. Her very first deal had gone sour, and she was sick of dealing with it. She bought three mid-1970s mobile homes on 2.18 acres lcoated just outside the gate to a major military base. Her plan was to renovate or replace the MH with newer ones. She went to the planning commission and they had changed the zoning to permit only 1 structure per acre. These three had been grandfathered in. Therefore, no changes could occur without losing the grandfathered status. So, no expansion, no increased density, no grand mobile home park scheme.

Anyway, she is willing to deed me the whole thing. She owes $58,000 on a 12-year note at $460 per month. Two of the places are rented at $350 per month, and she just finished replacing the flooring on the other one. If just needs carpet and paint inside.

This looks too easy. $1050 gross income, $275 per month expenses, $460 per month debt service, more than $300 per month cash flow.

Based on a 10% cap. rate, the market value is around $95,000. What am I missing?