Manufactured Home in Park Deal Analysis
Hey BP MHP masters,
I've come across an opportunity and was hoping for some feedback.
I am looking at a deal that includes the following:
1999 Fleetwood DW 1,300 SF 3/2 (well maintained, minor cosmetic issues typical for age)
Park: Consists of roughly 75 -100 units mixed heavily... DW manufactured homes of this age and above account for only about 30% of total mix. Next to nothing in amenities. Family park.
Park Rent is $300
Tenant Rent $800 (there is an existing renter in property that would like to stay)
Home Price $10k (this is a slow moving market, there are no sales in park in last year, decent SFR activity just outside MHP though)
Vacancy 15%
I understand parks frown upon renters generally, I am contacting the office tomorrow for clarity that I can continue to rent tenants there per their guidelines/screening. I also need to understand what average utility prices are for these.
What I am thinking is to buy this cash and simply hold it for cash flow. Mulling ideas like after the tenant leaves putting it RTO at market rent +$200 for 5 years, which would give me back initial investment, on paper anyway.
I have never really considered a MHP rental before, I guess I'm looking for things I should be considering that are specific to MHPs that could eat at my cash flow. Why is this a bad deal!!!???
Thanks for your input in advance! $$$