How would you finance this deal??

[Kacey W]

Ok. I am waiting for a signed contract to come back on a mobile home park I am purchasing.

Here are the general numbers:

-100% occupancy
-Purchase price- $300k
-Down payment- $100k
-Owner will finance- $200k @ 360 month, 8%, 5yr balloon
-NOI w/ current owner and under market rents-$28,900
-NOI from day 1 under new owner (1st yr)-$42,224.50
-NOI after debt service (1st yr)-$24,614.50
-22% cash on cash day 1(after debt service)
-(30% cash on cash by year 3)
-49% cash on cash return if sold year 1(after debt service)
-(54% cash on cash by year 3)
-Total cash returned if sell park after yr 3 ($179,830)

Numbers are as precise as possible with dd expenses.

So this is a very solid deal in a very solid market. Probably a high 3+ star park that has been kept up very well.

I am willing to put in $50k to the deal and want to utilize investor cash for the rest of the down payment or total purchase price. I do not want to ask friends or family and would like to focus on finding connections for this deal and comparable deals I have my eyes on.

I will be looking to sell or refinance the park after 2 years to pull initial investment out.

My question is, what would be my best options for funding the remainder of this deal and why?

Also, if anyone is interested in talking more about this deal, and possibly investing, please pm me. I can show all of the info.

Thank you,

Kacey