Seller Financed Mobile Home Park

[Steve Witt]

Hi,

I'm looking at a small mobile home park in Ohio.

Outside a small town ( nice rural area) commutible to Dayton Ohio.

Its a Mom & Pop ,no leans, very run down.

It has 6 park owned rentals bringing in $3600 a month (old trailers)

2 derelick homes that need to be torn down.

Expenses are very low $3000 a year including taxes.

The park has a sand filter treament plant good for 19 homes, and a well with a 1200 gal storage tank.

They want $180,00,   20% down seller financed.

My plan would be to put in 9 more homes that i would own and rent .

What do you think about the price and terms?

[Jason D.]

I think you need a lot more info to make a good decision on this. $3000 per year expenses is obscenely low for a park. I would ask for schedule 'e' form from the previous 3-5 years to see what actual expenses have been. What is the cost to bring the park up to livable standards? What are the maintenance and replacement costs of the water treatment plant? These are all things that you need to consider before jumping into this.