IS THIS MHP A GOOD BUY OR NOT?

[Micah Pediford]

I have a MHP thats 45 spaces and can be up to 52 when expanded. 11 acres. RVs are 25 that come and go. 20 are mobile homes with 6 vacant. Can convert all the RVs back to smaller Mobile Home lots if wanted. Theres a 4 bed 2 bath home with 3 car garage thats remodeled in which the manager lives in in exchange for free rent. City utilities. Adjacent pool, slides, park and sports complex. Financials I've gotten from the owner suggest an 10-14% CAP rate. (tax returns say owner made 50K after all expenses in 2017) 325K asking. Came down to 300K. Haven't really negotiated hard yet though. 204K is owed on property and they're looking to cash out and retire pretty quick. Thoughts?

[Rachel H.]

@Micah Pediford Sounds like they're motivated to sell if they came down on the price. I'd check the infrastructure. Ask to see invoices paid of any work done to the park in the past few years. See if you can talk to the contractors who did the work. Plumbing and landscaping are usually the two biggest expenses when it comes to managing mobile home parks. If they're looking to retire, see if they're willing to owner finance a portion of the sales price if they want to avoid a big tax hit. Good luck!!