Updated 4 months ago on . Most recent reply
Mobile home double wide
Hello, I am looking into first ever mobile home deal. It's a double wide mobile home short way thats a duplex. Previous 2 tenants were paying $1,250 per side, so 2,500 when fully rented.
ive never purchased mobile home before and have no idea what kind of cash on cash returns are considered to be good? Park owns the land and owner only owns the mobile home.
expenses are as follows (monthly) assuming both rented out:
1. Pay lot rent $600 per month
2. power bill 200
3. Water 50
4. Trash 20
5. Terminix 60
6. Landscaping 120
7. taxes 30
8. Insurance: 75
Total expenses assuming both sides rented: 1,150 + vacancy and capx 16% ($400) = 1,550/mo
price is 55k, owner is willing to sell for 49k cash. Property needs only $1-2k in rehab max.
area is pretty good, C+ or B-
so we're looking at roughly $900 in monthly cash flow (2,500-1,550) assuming both sides rented or 10,800/yr
10,800/50,000 (purchase + small repairs to get rent ready) = 21.6% CoC
So I'm wondering if anyone can tell me if
A- did I run my numbers pretty accurately
B- are there any expenses I may not be accounting for?
C- is this a good deal for a mobile home where I don't own the land?