Posted by Adam (IN) on September 28, 2006 at 20:58:25:
you have to understand that typing in all CAPS makes it very hard to read and analyze your deal…try to seperate your context and #'s into sepearte sections so it is easier to navigate and i guarantee there are many here who will help you…
THOUGHTS ON THIS DEAL - Posted by larry
Posted by larry on September 28, 2006 at 17:31:51:
JUST CAME ACROSS A SMALL PARK, 8 UNITS, ALL PARK OWNED, DECENT UNITS, HERES THE NUMBERS;
5 RENT AT 565.00, 2 AT 500.00, 1 AT 525.00, = 4350.00 MONTH, 52200.00 YEARLY GROSS. EXPENSES FOR YEAR APPROX. 10000.00 INCLUDES WATER, TAXES, TRASH, MAINT, INS., PARK IS OWNER MANAGED. NOI OF 42200.00 BEFORE DEBT SERVICE. ASKING $245000.00. ANY THOUGHTS ABOUT THIS DEAL. THANKS
Re: THOUGHTS ON THIS DEAL - Posted by Gary
Posted by Gary on September 28, 2006 at 23:25:59:
What you have here is a property that someone has developed and added some low cost mobiles and is now attempting to sell it as an investment. The owner probally obtained and set those mobiles for a lot less than you could build an apartment that would rent for an average of $543.75. Don’t know your market but this is what I need in a deal. A working park that I can get in at less than $10,000 per pad,rents in the range of $150-200 depending on expenses,the owner MUST transfer to me for FREE all park owned units so I can Lonnie deal or sell for cash,and the owner must leave at least 10% of sale price in the deal in the form of a second,a note,assigned savings, or whatever works. Can’t find all that,then you don’t have a MOTIVATED seller, you have an investor/speculator trying to make a profit. Buy that type of investment for little or no cash flow,little appreciation,living with the reality of a tenant or two leaves you and you need two feed your investment cash from another source,like maybe a JOB. Also you get the pleasure to fix and repair 8 mobile homes over and over and over again. I’ve had apartments and always thought it was fun remodeling the first time but coming back after it’s trashed by a tenant is more than I can take. I didn’t even run your numbers on this 8 unit park,but these deals where you must hold and maintain mobile homes just ruins everything that makes a MHP a good investment.
Re: THOUGHTS ON THIS DEAL - Posted by Chris Reuman (Maine)
Posted by Chris Reuman (Maine) on September 28, 2006 at 21:42:12:
I would analyze this similar to an 8-unit apt building. You need to make sure the expenses are correct. They seem a little low. Who is going to manage the tenants, fix the places, etec…? What condition are the homes in? the park in? the infrastructure in? What is the potential upside? extra acreage? It seems like at this price, you won’t get much if any cashflow and no upside potential. I would be interested in them, if they were on their own pieces of land. Then you could replace them with DW or Modulars and make some good appreciation.
You may want to give us more information, if you have it.
Best investing, Chris