Mobile Home Park

[Alex Clifton]

Anyone in the central Arkansas area have any experience or knowledge of running mobile home parks? I am looking to purchase one that has an enormous amount of value add potential and wanted to bounce some ideas off of an experienced investor. 

A few details:

Asking price is 40% of the county assessed value for the land. 5 acres 

Currently at 17% vacancy by 9 park owned homes. 52 lot capacity. 5 other park owned homes that need to be removed IMO (un-rehabable/safety of the park). 

Currently brings in $3500 of rent a month. 

Water is not sub-metered and costs $450/month by owner. MAJOR VALUE ADD

Taxes are 4400/yr. ~$370/month

Already has management - assuming 10% @ 350/month.

Without due diligence and sellers numbers ~ $2330 net income/month.

Obviously PITI, electric, gas, insurance, sewage/water inspections, land maintenance, permits, taxes etc... are not calculated. Will have these numbers after my inquiry is made at the property today.

City-data shows low crime and 13% of the population are mobile home occupants within the city. 

More info to come after visit and meeting with property owner today.

NOTE: Deal breaker for me will be if the property has septic/well water AND no nearby access to city water. 

All comments, questions, and suggestions are welcome!

Provide some feedback!

Alex,