Updated almost 9 years ago on . Most recent reply
Deal analysis, please help a newbie!
Price: $500k, Lots 24, 100% Occupied, 19 units park owned, all older units (70s-80s) .
Gross income: $96000, Expenses $46k not including park management. So maybe knock off $10k per year which at a 10 cap would imply knocking off 100k on an offer sheet.
Here's where I see the play: Lot rents $150, park owned average $375. Surrounding parks are charging $250 or $300 lot rents and $500-700 for park owned, if I did my homework correctly.
Also, the expenses include $25000 in park paid water sewer and trash.
Thoughts? And thanks for your time!