What do you think about this deal?
So I came across a unlisted mobile home park 3 1/4 acre with 13 lots, 100% occupied and none of the homes are park owned. The park is 5 miles from a super Walmart.
Wondering what would you guys personally pay for a deal like this? I'll tell you what he is asking after I get some answers as I don't want to influence anyone on price.
Owner is selling because of retirement.
There is a Husband & Wife that owns 11 of the 13 total mobile homes on the lot rentals that makes a monthly deposit, and the other (2) lot renter's also deposit at the same bank.
The 4th renter rents a 1/4 acre RV lot at the rear right corner of the park that sits behind the 13 mobile homes and pays $300.00 per month lot rent.
You only have (4) renters to collect from each month and you don't even have to go personally collect yourself or hire someone to collect on your behalf.
According to the seller, rental payments have always been made on time which is on or before the 10th of each month for the past (46 month's) that I have owned the park.
Expenses:
2016 Property Tax was $620.68
(4) septic tanks pumped out at a cost of $1,000.00 aprprox. every 3 years. (Averages out to $333.00 per year)
Lawn Mowing & Trimming during the cutting season (7 month's) is at a cost of $270.00 per month or ($1,890.00 per year) which includes being cut & trimmed twice a month (every 2 weeks).
Liability Insurance cost is $302.00 for a year for a Three Million Coverage.
Electric for the well and night lights is $73.00 per month or ($876.00 per year)
All renters take their garbage to a County owned dumpster so there is no garbage or trash bill.
The gravel road is so compacted it only takes a few shovel's of gravel per year to fill a few dips.
Gross Income:
13 lot rentals x $175.00 each per month = $2,275.00 x 12 month's = $27,300.00 yearly gross income.
1 RV lot rental x $300.00 per month = $300.00 x 12 month's = $3,600.00 yearly gross
$30,900.00 (gross yearly income) minus $4,021.68 (yearly expenses) = $26,878.32 (net yearly income)
There are (4) septic tanks and (1) well for the lot's that convey with the park and "all renters" pay their own electric bill.