Mobile Home Park Deal Analysis
Hi everyone - first time poster here
I am looking at a mobile home park that had been listed through a realtor for several months with no bite. To me it looks like a cash flowing cow, but would love to hear what things I may be missing. The details are as follows...
14 park owned trailers. All older and in verifying conditions and currently renting for $7,050/mo
1 tenant owned trailer. Lot rent is $200
1 4 bedroom house on the property. Current rent is $700
Total monthly income is $7,950
Previous years expenses were
~$15,000 utilities (has city sewer and water)
~$20,000 Maintenance and upgrades
~$10,000 depreciation
~$15,000 operating expenses
With vacancies, the previous year total income was ~$75,000
Asking price is $225,000
On the surface does this look like a good deal?
What questions do I need to be asking to ensure I am not missing something major?
Any other input is greatly appreciated!!
Thanks in advance!