i am looking at paying a small ( 8 homes) mobil home park in Colorado, i have never done a deal like this before and i am wondering what kind of financing i can get after i buy it for cash, can i get my money back out of it or at least 70% with a commercial loan or something like that.
i as not looking for mobil parks but i have always been interested in them and flips are getting harder and harder to find with everyone doing them and also over paying for them, so when i saw this as a rental opportunity i thought i might try it, i have a few rentals as of now, and long term rentals in where i want to be. i am just flipping to raise capital to buy the right multi family .
any and all help with this would be great.
thank you so much Jason Eberhardt
I recommend leverage for this property. If you’re looking to finance a mobile home park I would first ask the seller if he or she would be willing to carry the paper, if not, then call all the credit unions and banks in a 20 mike radius of the park. Usually they will ask for 20-30% down, 5-10 year term, and 15-25 year AM. If you buy it cash your cash-on-cash return won’t be as good.
First choice is to look for seller financing. If not, definitely refinance (or get a loan before buying). Try the local banks.
My concern with your park would be how to make the numbers work with only 8 homes Rents would need to be fairly high and/or price very low for these types of deals to make financial sense.