Mobile home park
Hello all, I am looking at a 13 unit park to invest some of my self directed 401 in. It looks like a decent deal, but I am wondering what you would recommend for an offer and how to best finance to maximize return. Or should I just pay cash for the whole thing with the 401. Details are as follows:
Purchase Price: $127,900
Land Size: 1 Acre, plus an additional .87 acre lot to the North of the site.
Mobile Home Lots: Income: $2195 per month,
Expenses: $450 per month, Owner pays for trash, sewer, water, taxes, and insurance.
Tenant Expenses: The tenants pay all additional utilities.
The property has very good cash flow; all lots are occupied at this time except for one and tenants own their trailers.
Rent Roll:
#1 ? vacant lot
#2? $175/mo. 4 mo.
#3? $135/mo >6yrs
#4? $175/mo >6yrs
#5 ? $175/mo >6yrs
#6 ? $175/mo >2yrs
#7 ? $175/mo >4yrs
#8 ? $175/mo >6yrs
#9 ? $175/mo >6yrs
#10 ? $175/mo >3yrs
#11 ? $175/mo >6yrs
#12 ? $175/mo >3yrs
#13 ? $160/mo >5yrs
Well Water: There is a well on the property, but the water to the trailers is city water.
Sewer/Water Line: The Seller owns the main sewer line
Seller also owns the sewer lines underground going to each mobile home. Seller owns the water lines from the city main to the lots. Each mobile home has its own water meter, which is owned by the Seller. The tenant is
responsible for maintaining cleaning sewer lines from their home out to the park’s main line on Pearl… The Seller maintains cleaning the main sewer line. If any of the sewer lines need further maintenance or repair, the park owner is responsible for that.