Deal or No Deal?
Hey BP Community,
I’m working on a unique deal and could really use some guidance to bring it across the finish line.
A broker that I have worked with in the past came to me with an opportunity that I am extremely interested in. I have a chance to acquire a property that includes a mobile home park (100% leased) and a separate multifamily property. Both are well kept, in a prime spot, with great rental demand.
The Math:
Purchase Price: Between $850000 - $900,000 (As-is value is approximately $1.1M listing)
Current Mobile Home Rents Avg. $700/month (about 35% below market, which is closer to $1,000-$1,200) or approximately $6300 per month.
Multifamily Property is Currently vacant, but there's a signed letter of intent from a state housing agency to lease the property on a 5-year NNN lease at $3,000/month.
This property has stable cash flow now, with a strong potential for upside by adjusting the mobile home rents to market rate. Plus, the long-term lease on the multifamily units can provide steady income. There’s also future development potential given the size of the land and zoning (allows for medium density development up to 8 units per property).
What would be the best way to structure financing for a deal like this? I’m considering traditional lenders, but open to creative options.
If I were to bring on an equity partner, what’s a fair and motivating structure for both sides?
If anyone has experience with mobile home parks or multifamily deals in high-demand areas, I’d appreciate any insights on what worked for you—or what to avoid.
I believe in the potential of this property and am eager to make it work. Thanks in advance for any advice or direction!