Vikram,
Here the message from the seller:
"Hello Uwe,
Our price is pretty firm, we've already reduced it from our original asking price of $240,000 so there's not much room for negotiation at this point, sorry.
The financial's are pretty basic, currently we've got the monthly income to just over $3,000 a month which is very good considering we started at below $1,000 a month when we bought it in May of 2008. The guy we bought it from was a real disaster, he was on the verge of foreclosure. We came in and really cleaned the place up, bought several used trailers and fixed them up to rent out, and put in an on-site manager.
There is still plenty of room to increase the revenue by buying more trailers and renting them out. That's where the demand is and where you'll make the most money. You can get $300 a month for each trailer, as opposed to $150 a month for just renting out the lot/pad.
The expenses are reasonable too, we pay the water & sewer which runs between $600 to $800 a month. Tenant's must pay their own electric, gas, cable, phone, Internet, etc. Also, all tenant's pay for repairs to the trailers (even the park owned ones), that's how we can keep the rent so low and it's a good incentive for people not to trash the trailers.
We pay the manager $300 a month and comp him his lot rental @ $150 a month for his trailer. For this compensation he collects rent, rents out units/lots, completes all leases/paperwork, cleans out units after tenant's move out, shows vacant units, minor repairs and lawn service. He is very reliable and we can recommend him very highly.
The annual Real Estate Taxes run $1,700, the Insurance annually is $500."
A 2 bedroom is $375.
The park has 60 spaces, 16 filled as sellers statement.
-Uwe
Nov 18 '09, 01:39 AM
