MY FIRST DEAL- MOBILE HOME PARK ANALYSIS
Hey Everyone! I am looking to buy my first mobile home park and have found one for sale that I am interested in.
-No Park Owned Homes
-City water and Sewer
-2 apartments
-13 owner occupied spaces, One vacant space
-Not currently sub metered
-2 acres of adjacent raw land sold with park
-Approx $40,000 of notes on seller financed homes sold with park
-Very good condition and good monthly collection
-Along the main route through the city of Willcox, Arizona.
current expenses include manager, water, sewer, trash, taxes, insurance, and security lights = 38.42% of GI
NOI: $29,188
ASKING PRICE: $295,000
Seller financing 30 year amortization with 6 year balloon. $75,000 down.
My concern is that this park is located in an area that is "Middle of nowhere" status. Population and job growth declined 1% over the past year; however, many new developments have just been built including John Deer Sales center, Massive Family Dollar, New police station across from MHP, and more.
No terms have yet been negotiated. Is this a potentially good deal? If so, what terms should I negotiate? I would really appreciate any advice, thank you so much!