How would you valuate this park?
I’m looking into possibly purchasing a mobile home park about 4 hours away from my home town.. it’s in a great growing market. The owner is 84 years old and sounds very willing to give it up as his kids want nothing to do with the park. Here’s what I know:
40 lots
39 lots full (all Tenant owned newer homes)
200 lot rent that includes w/s/t
4 wells
4 septic tanks
Walmart about 5 miles away
Another park about 3 miles away has lot rents at 431 plus tenants pay for sewer and trash. That park is 100+ spaces and only 1 vacancy.
The park I’m looking at is sort of down a back road but not too far away from everything obviously.. scares me knowing the park has 4 wells and 4 septic tanks as I hear nothing but horror stories about private utilities however, if I get a sweet owner financing deal (which I think is possible) I can factor that into the purchase price and monthly expenses. The seller doesn’t seem to have much of an idea as to the monthly expenses at the park and his book keeping sounds like it’s all over the place.
Would greatly appreciate everyone’s thoughts and input!