Where Can I Find $100K For Mobile Home Park
Found a mobile home park which I would love to purchase for the estimated cash flow and low liability.
It's land only with lots divided out and 8 mobile homes in the park.
The seller is renting them for around $150/Month, but I think they could easily rent for $210/month or more ($1,680/Month).
The seller is asking $100K, but I feel she may accept less. I don't know how to go about finding financing for this deal as I'm a little cash strapped right now with another home. Any ideas/advice would be absolutely appreciated! :)
Heloc, family friends, seller carry, credit cards?
What area is it in?
@Joseph Gray
Ask the seller if she will carry any part of the loan.
You can find some great ones for $60k in Phoenix AZ
@Joseph Gray do you have any equity in any of your properties? Do you have a good relationship with your local bank? If you have either of these and the property Aprasel is good. You should be able to 100 fin. By holding equity in place of cash.
Beyond what others already mentioned, consider either partnering with someone with money or wholesaling it. How many lots is it subdivided into total? Is it only 8 or more?
@Joel S. Hello! It is located in Coward SC
@Jason Graves I will ask them! Thanks!
@Jordan Moorhead Thanks!
@Frank V. Wow that's awesome! What are the cash flow amounts on those monthly?
@Thomas Oliver Thanks! Currently most cash is tied up in a home with no mortgage note. I'm looking to do a cash out Refi though and maybe be able to recoup those funds to make this deal work
@Alina Trigub Thank you! Yes, it is 8 lots total. The land only is owned however, not the mobile homes which sit on the lots. Thanks!
Joseph,
Then as I said earlier, bring it to a few local REI clubs and see if you can find people to potentially sell it to or partner with. Note the latter is a lot more involved!
Originally posted by @Joseph Gray:@Alina Trigub Thank you! Yes, it is 8 lots total. The land only is owned however, not the mobile homes which sit on the lots. Thanks!
@Joseph Gray
You should email @Brandon Turner he might want to join 😁
@Joseph Gray. So you’re just buying the land and the trailer are paying paid rent ?? If so ask the owner to finance you until you’re able to get financing.
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Originally posted by @Joseph Gray:Found a mobile home park which I would love to purchase for the estimated cash flow and low liability.
It's land only with lots divided out and 8 mobile homes in the park.
The seller is renting them for around $150/Month, but I think they could easily rent for $210/month or more ($1,680/Month).
The seller is asking $100K, but I feel she may accept less. I don't know how to go about finding financing for this deal as I'm a little cash strapped right now with another home. Any ideas/advice would be absolutely appreciated! :)
Wholesale, Wholesale, Wholesale!
Trailer parks are a COMPLETLY different best in REI, on level of difference from SFR as Mini-Storage, it is truly that different. To start with, a 12cap is a lame duck in parks market. I am assuming you don't have a valuation and prospectus report as it sounds like you were placing rent's by gut feel, parks run by data and #'s, never gut. You also mention it is either in development or decline as 8 lots open, you can not start capitalizing on rents until you first have occupancy meet and I can tell you it is a lot harder to get empty lots filled than it is a SFR occupied, unless you have the $800K kicking around to buy and place trailers to than carry back financing to buyers's/tenants? All this and more is why I say WHOLESALE, WHOLESALE, WHOLESALE because you need to get more knowledge and experience in the market before diving into the deep end with just a hope and a prayer.
If it's in MN I am open to looking at it and I will give it to you straight. Hell, may be one I or those in my group already passed on. Parks take years to develop to full occupancy, and even though it's dirt their IS maintenance costs and things that go wrong. Think replacing a sewer main sucks, imagine doing that for 20+ units, or repaving roads which surprise surprise roads do wear out. There is a lot of different things that come up and when they do it's tens or hundreds of thousands.
100K investment for the possibility of $1,680 per month?? I am new to MHPs but am I the only one who doesn't think this is much of a deal?? Seems that any deferred maintenance would tank this pretty quickly...