Small trailer/mobile park under contract questions
Just recently got a small mobile home / trailer park under contract. Curious on thoughts as far as investment. I'm still waiting on a few expenses and inspections to come back so still have time to pull out if something comes back a red flag. The property consist of 7 trailer spots (small personal rvs) with sewer hook ups and power on each spot. Separate power meters for each spot and tenants pay for their own power use. On the same lot at the end is a single wide mobile home. There is a community laundry/bath house with coin operated washer and dryers that the trailer spots can use. On another attached lot is a newer 1700 sqft double wide with a stick built shop that is beside and is fully insulated with power. The property is 1.6 acres in total with the option to ad a stick built home to the front or another double wide down the road. (Can't ad more trailer spots due to being grandfathered in) whole park is super clean and well kept. All spots are rented except for big mobile home due to past owner living in that unit.
Rent as followed.
Trailer spots 1-7 fully rented with rents ranging from $330-380 totalling $2440
spot 8 is single wide rented at $800
big mobile and shop to be rented at $1600
total rent $4840
bills are garbage bin at $102 a month (covers all units)
taxes $2000 a year
Park owner pays garbage, water and sewer.
property is on well but public sewer (waiting for those figures.)
room for another $1400 unit down the road
park is very clean as well as the guest there and in great area.
agreed price is 550k
loan is at 5% from private lender. Does this deal seem nuts or is it something that you would pass on. Sorry for the long post.