I'm new to BP and to real estate investing. I didn't really even consider that REI included mobile homes. In my research, I seem to have found a mobile home deal that is too good to be true. If the info I see is correct, the NOI on this property would pay back the all-cash purchase price in 26 months. Is this possible?
@Jared Lillard Most definitely! Though, it's not always just about the numbers. The type of neighborhoods and the clientele you choose to work with are other important factors to your success. If you have the numbers for the deal, you may want to post them here to get some opinions. Good luck!
Thanks for your reply. Here are some numbers.....asking price is 70k, gross annual rental 37k, expenses and taxes 3k. This is a multi-family setup with 3 units. The mobile homes are all about 20 yrs old. That's the part that gives me pause. I haven't been to see it yet, so can't really speak to the condition.
Expenses look way too low. Expense ratios on small parks are often over 50% of gross income. There are lots of factors that can swing the ratio either way. Get a copy of tax returns.
Jeronimo C. I'm quoting the MLS. I imagine they only post fixed expenses on there. I'd guess that's just insurance and tax. No clue what repair and maintenance is yet.
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