Posted by ray@lcorn on September 15, 1999 at 13:05:51:
David,
Doug has given you some great guidance. His advice comes from the experience of owning a park, and so does mine, so we’re going to have very similar opinions.
You didn’t say how many of the spaces/homes were occupied. My preliminary strategy for acquiring a park like this would be to have enough income to cover the primary debt. If the owner will sign a subject-to contract, then you have a lot of options. A key component of the acquisition will be your game plan for improvement, and an appropriate exit strategy.
Other concerns would be the condition of the water/sewer lines, verifying appropriate zoning, and developing a reasonable estimate of the costs involved in needed improvements, along with a timetable for completion. Priority items would be those that concern the streets or utilities, then those of appearance.
I wouldn’t be worried about being an hour away… you’ll do some of your best thinking on the way to or from the property!
My gut instinct says there is a deal here…
ray