Posted by Greg Meade on September 14, 2007 at 19:45:42:
would work well for you. I would expect your fixed costs (property taxes, home insurance, maintenance, vacancy, well testing, umbrella policy, etc) will be over 50% with only a few homes and a few lots cranking out rent.
The real money will come about as you infill empty spaces. Depending where the Park is located, this could be a huge, good dealfor you.
This business model (small parks) very closely resembles Tony and Scott’s operation in NC. (Ryan’s also).
Something I would do if I were you is go to Asheville, NC to Tony and Scott’s Bootcamp next Summer. These guys do such a good job answering these types of questions…I went in August and I will go again…full of info. Steve WA has anevent next month in Seattle also.
Another idea is a L/O with maybe 1K as Option Consideration (down)and low monthly lease amounts (payments).
One thing that can not be overstressed is to have a real plan to fill that Park after purchase. Sounds like you need 14 homes. S/w used 14X70’s cost 12-14K delivered and set in my area. Without funding for these homes in place, you have just created a J-O-B!