Hi my name is Dennis and this is my first post here. I have been looking into mobile home investing but ran into a (what I think to be a sweet deal). It is an actual mobile home park in Florida 8 lots on 1.8 acres for 149k with owner financing. 40% occupancy, city water with 4 septic tanks.
Gross Income $28,719
Operating Expense $13,328
Net Operating Income$15,390
Expense Ratio 46.4%
No debt info and average rent 450
6 of the homes are park owned.
I would like to know if this is as sweet of a deal as I think it is. I am a newbie but I would love to take on this task.
I have just started to learn about mobile home parks. One formula I learned is monthly lot rents X expense ratio = value of the land. This gives you a quick value based upon a 12% cap rate. This would not include the park owned trailers. That value is calculated separately and then add them together to get a true value. In my short time of looking for property in Florida, I have found it to be rather high but I'm sure there is always an exception.
Just wondering what happened with this MHP deal you were looking in to? Do you have an update?
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