Potential MHP Deal - First Multifamily Please Help

[Brian T. Allman]

Here are the details! - I appreciate any help, feedback, or additional due diligence suggestions. I may need a partner on this deal. If it appeals to you, please comment below! $430,000 20 Units, 7 Vacant 950 sq ft building, livable, used as ‘office’ 3 Acres City Water, City Sewer, Paid by park Power, 1/2 Separately metered 1/2 Master metered (how much does that conversion cost?) 5 Park owned homes recently renovated Water lines recently updated, sewer lines giving some trouble with longer runs otherwise ok. Rent: $4950 Expenses: $1,250 Gross Cap: 13.8% Debt service: $2,028 Est. Cap on Cash: 14.2% Financing: 25% Down, 25yr amort, 5.75% commercial Working on: test ads, quotes for separate electric meter conversion, crime report from local PD, better financing What am I missing?

[Rachel H.]

@Brian T. Allman Definitely check the infrastructure. Try to talk to the contractors who have actually done the work on the park. Who's working on the sewer lines? Be sure to see what they're doing to correct the issue, if any. If not, you'll have to work that cost into your offer. Price out the conversion for the meters. If the park's already working with somebody or if they've done it themselves, check to see how much it cost them per unit. Besides the 5 park owned homes, are the rest owner occupied? Are the rents in line with the market? Or is there upside potential to raise rents? By how much? Just a few questions to keep in mind. Hope that helps!