Possible MH park deal -Lonnie help! - Posted by Doris Shanks - Va.

Posted by Brian H on June 19, 2001 at 17:20:12:

You need to post this on the Mobile Home Board so Lonnie can see it.


Possible MH park deal -Lonnie help! - Posted by Doris Shanks - Va.

Posted by Doris Shanks - Va. on June 19, 2001 at 16:57:13:

Hi Lonnie -

I am working on a deal to buy a small MH park with 21 spaces and a small SFH. I have a partner who is very knowledgeble (park mgr. and investor) and a third party who has the investment money for a down payment.

I have Deals on Wheels and study it constantly. Also just got Making Money with Mobile Homes yesterday.

This deal is very similar to your daughter Janet’s park deal except that more deferred maintenance is involved. Park has been for sale by elderly widow for three years. Owned free and clear. She wants out - retire to Florida.

All the homes are on septic tanks - some of which are UNDER the houses. Two houses on each tank.
All older homes and small lots. Possible 14 x 70 on a couple lots - mostly smaller homes.

There’s a large pond in front and paved roads. Neat and clean looking for an older park.

Have been told by the listing realtor that the hookup fee is $20,000 to connect to sewer line on street out front. No estimates yet or engineering surveys on costs to convert park to city sewer.
After contacting the realtor and receiving the “package” with maps and three years income and expense figures, I learned that an additional tract of land (6 acres) is included which runs across the back of the park and off to the right.

This consists of a clear field of 2 1/4 acres directly behind the park and 4 subdivided and zoned
building lots on the right hand section. Each lot is about a half acre wooded land.

I visited the courthouse and got area maps and information on ownership.

I had cruised the park before contacting the realtor but had no idea about the extra 6 acres. My partner and I went back and checked out the land and concluded that if we could expand the park onto the cleared 2 1/4 ac. - the park might be a good buy. The building lots could be sold off for capital investment funds - i.e. connect to sewer and develop the expansion lots with city sewer lines. (No more septic sytems allowed anyway)

We could convert the existing park at a later date. That is grandfathered for now.

The entrance road to the right of the park is actually a public street and gives access to the
rear parcels.

The numbers are almost exactly like Janet’s park.
I have worked out an evaluation based on Doug Oterberg’s system. Also picked up a couple good details from Janet’s offers.

Without giving the actual numbers, does this sound like a potentially good deal?

All the existing homes are owner-occupied except for three park-owned rentals. These can be sold to the occupants or replaced with newer homes and sold. There are no vacant lots.

Sorry this is so long. I would love to discuss this with you.