Looking to buy mobile home park as first real estate deal
I am a new real estate investor and have been looking into single and multi-family units to get going with my investing but have come across a mobile home park for sale near me in Spokane, WA. Certainly much more than I was looking to spend on my first deal but I guess when I'm all in I like to go big. Looking for some help/info from people that have some experience or knowledge in the area or even maybe that would be interested in partnering on a deal.
Is a 55 Unit mobile home park built around 1971
Currently has 27 tenant owned homes renting for $250 each
17 park owned rentals renting between $475-650 (dont have specifics on this yet)
My rough calculation is about $15,250 NOI monthly currently at this vacancy
Looks like 11 spots unfilled
Uses on-site septic and well
Looks like good size piece of land, 22 acres
Located on the outskirts of bigger city (Spokane) so not too populated, maybe not most desirable location, possibly look into having some RV sites added if not already there as this area is highly traveled??
Asking price: $1,150,000
Las tax valuation in 2017 was $938,930
Annual taxes $10,200
Cap rate (as given by seller): 9.19%
Would be looking to put down 20-25% with my own cash and probably help from a partner and talk to bank about financing options to buy although haven't talked with bank yet
Have not yet been out to look at it so not sure of condition of park/homes.
Looks like an interesting deal as it is a decent sized park that could generate some cash flow but I am concerned about the vacancies and location??? Any good advice from anyone on if this sounds like a good/bad deal would be greatly appreciated.
Casey Doggett D.O.