Mobile Home Park with 30 Units
Hey all! I've been reading the forums and enjoying and learning from everyones input for a few years now. I'm in negotiations with a seller and would love some feedback from you experienced guys. Here are the details.
-its a 5 acre seasonal park on a beautiful large lake near Cooperstown NY with 30 cottages all owned by the tenants.
-it only operates from may 1 - oct 1 (5 months a year) the water gets turned on and off on these dates.
- each cottage has there own septic which they are responsible for. The park supplies water from a well.
-tenants currently pay 2000 per year. Most tenants have owned cottages for 10+ years and rent has been very reliable with 100% occupancy for the past 20+ years.
-the park includes 60 ft of lake frontage where tenants are allowed to keep there boats and put there docks. The current owners allow the use of the lake frontage but do not have anything to do with putting docks in etc. This is all done by the tenants.
-last 3 years operating expenses were just about $10,100 a year. Pretty much all that needs to be done is mow the large 2 acre lawn and maintain the water system.
- so the numbers look like this $60,000 gross income, $10,000 operating expenses = $50,000 net operating income.
So i'd love some input.
What is this park worth?
What should i offer?
Owner financing is definitely an option.
What is a fair term and rate for owner financing?
Looking forward to your input guys!
Best,
Jon