Updated over 1 year ago on . Most recent reply
Is this a good opportunity or no?
I am looking at a mobile home park that has (5) mobile homes on it.
Current cash flow is $557/MO - Cap Rate 6.9% and COC 18%.
Does this sound like a great opportunity? Looking for some feedback and thoughts. Thank you in advance.
Most Popular Reply
Used mobile homes here in WA state sell well and for considerably more than 5K, even if they need to be moved. I just sold a 1981 double wide that the tenant had totally trashed to the 3rd person that looked at it for 10K, and I think I could have gotten 15K. We required it to be moved off the lot at buyers expense. Now if they are sold to be left in place, they are they are worth at least twice that. And this was for one that needed totally remodeled inside. It all depends on the market where you are, so just do a search online at what is for sale. A dealer will offer you considerably less, one offered me $2500, so I figured if he was going to resell it I might as well just market it myself and it wasn't difficult to sell. It all depends on the age and quality of the mobile homes you are considering, and your local market. Moving expenses can be anywhere from $7K to 20K here, quite expensive. They can be nicely remodeled but not worth it unless you want to leave them where they are.