BiggerPockets

Alright everyone, I really could use an opinion if you don't mind... I'm looking at a potental buy, and it would be the first, so I'm a little nervous!

It might be a long story, but here are the details -

I'm looking into a really nice 2br/2ba in a well maintained park. It doesn't have a refrigerator or washer/dryer in it, but those are the only appliances it's missing. The guy that I would be buying it from is a builder, and he and his wife put $4,000 into it to fix it up (or so they say), and they were planning on selling it. They're having a really hard time selling it though, I think mostly because they're asking for at least a $2,000 downpayment, ie, they're naming the terms. He was willing to sell it to the first person that walks by with $3,000 cash. I think it would actually be a great deal. I mean, I almost want it for myself!

The biggest problem is, the lot rent is a whopping $470! Can you imagine?? $470 just for lot rent. I mean, they mow your lawn and plow and things like that, and the park is right next to a major city; you couldn't get an apartment in this area for less than $700, so... It just seems like the profit margin is really tight, and especially since he said that everyone he showed it to got turned off by the lot rent. It's a nice looking park, the nicest one I've seen in the area, and people obviously pay it because it looks to be at least 90% occupied.

Any thoughts on this would be helpful! If I can deal with the lot rent issue, this would be a wonderful park to work in.

Thanks!!
~Skye

This seems like a marginal deal. I suppose you are planning to sell the home with seller-financing, as opposed to rent it? If you are planning to rent it, then you do not have sufficient margins to pay for the depreciation and maintenance of the home. If you are planning to sell it, for say $200 per month or so, then you get your original cost back in 15 months, which is OK but not great.

How much would it cost you to move it to a cheaper park?

Personally, I would lean towards a lower lot rent to get my feet wet/get comfortable with the market.

I have found that there is NO shortage of motivated sellers out there so if your gut tells you WOAH wait a minute.. then you may want to listen. JM2C

Hi, I know this is an old post but.. In my area(MD) lot rent is over $500!! I ordered lonnie's books and have been looking for a nice park in PA, DE MD VA area... I hope there is nice cheap park out there still.