Mobile Home Park Deal Analysis
Hi! I'm hoping to get input on a mobile home deal. This park has 25 spaces being sold as a package (19 in one park and 6 in a smaller park down the street). They are on city utilities but there are no separate water/sewer meters and the owner has indicated separate meters cannot be installed.
So here's the breakdown:
8 lots occupied
9 lots vacant
5 vacant park owned rentals (all need work before they are habitable)
3 occupied park owned rentals
$165 lot rent
Asking Price: $125K
The owner says he will not do owner financing which may present an issue, but I'm not sure yet. Everyone pays their own utilities but the water/sewer looks like a pain with everyone paying piecemeal and several are many months behind.
There is an encroachment that occurred when the city decided to expand the street. Once the street expansion begins three of the mobiles will need to be moved forward.
This does not seem like a huge deal but I'm trying to include everything.
Several of the pads need work-the cement is broken up.
I believe the owner fired the manager so this could be a problem.
I have never owned a park and would have to get on an airplane to get to this one. As you can see, this one has some issues! I will be taking a class and have been studying the forum to absorb all I can.
Input on price and this entire scenario would be very much appreciated! Thank you in advance!