There is a MHP for sale in my area for $899k. It has 25 pads, 3 of which are vacant. All resident owned., and paved roads throughout. The seller is willing to finance with $260k down with an interest only loan type at 5% interest.
I'm a newcomer to investing so I dont have any other properties or any major capital saved up to drop 260k as a down payment. However, I am interested in seeing if the owner will go with a little more creative route with me since they are already interested in financing.
I'm thinking of seeing if they are interested in a 2 year master lease, which would give me alil more time to build my credit up to where I have nothing to fear, credit wise. I am curious as to what you guys think of this investment and what are your options for any alternative creative financing options if the seller is open to them. Also if anybody had any opinions on getting a 2nd mortgage for the downpayment portion.
Thanks for the insights in advance,
Where is the park located? Are the homes park owned or lot rents? Can you expand? Is this on public or private utilities? If they're park owned homes, have you determined the full cost of deferred maintenance? I might be looking to partner on a deal of this nature, however, a decent MSA is critical for me. Thanks, RM
Thank you for the reply. The park is located just outside of Albany, NY. All 22 are lot rents and public utilities.
By room to expand do you mean vacant pads or something else? If so then there are 3 vacant pads. I am not familiar with MSA, would you mind elaborating more on that?