Does $100K buy both the MH’s and land, or just the MH’s. If just the MH’,s that’s over $9,000 per box. Unless they’re fairly new units, that’s too much.
If $100K buys both the MH & land, it sounds like a pretty good deal based on your figures. BUT, you need to separate the dirt from the MH’s and arrive at a price for each. Don’t use the rent from the MH’s to get a price for the park.
If you plan on renting both lot and MH, be sure you include all expenses and any deferred maintenance needed on the park and homes. A rule of thumb is 35-40% of gross for expenses.
Posted by Dewey Smith on July 26, 2000 at 24:24:51:
I have a chance of buying 11 trailers for around $100,000. Ten of the trailers are 2 bedroom and one bath. The last trailer is a three bedroom and 1 bath. Six are located on a 1/2 acre lot with private septic and 4" well. Three sit on an acre lot with private septic and 4" well. The remaining two sit on 3/4 acre lots with private septic and 1 1/4" wells. All septic and wells are new in the last three years. The two bedroom units rent for $350 and the three bedroom rents for $400. Gross rent for the month is $3900. I have approximately $20,000 to invest with the remainder bank financed. The taxes for all eleven are around $1500 per year. The owner pays trash removal of $1620 per year. My mortgage would be around $1200 per month. Insurance is approximately $135 per month. Gross profit would be $2300 per month. Since I am new to investing in trailers, is this is a good deal? Even if I include $700 per year maintance on each unit, I will still average around $20,000 profit for the year. Any help would be appreciated. Sorry for the length of the e-mail.