*** Deal Of The Century *** Help Needed...

[Engelo Rumora]

G'Day everyone,

It's me, your favorite Aussie.

I need help from anyone and everyone that has experience investing in trailer parks.

The number on a deal I'm looking at buying look absolutely MONSTROUS but the again, I don't really don't know what Im getting myself into.

Here are some numbers and demographics below:

PP = $80,000 max (I'm trying to buy for $60,000)

Area = C Class and very industrial

Size = 4.5 acres and 60 pads (15 trailers currently producing $30,000 gross)

Property = 1 out 10 (Everything is falling apart from the fence, signs and the club house which is fire damaged)

Rehab Needed = Around $50,000 to make it a 5 out 10 complex.

So I'm running the numbers and estimating to be all in for $120,000, bringing the complex to a 5 out of 10 (Nothing sexy, nothing flash, just neat, tidy and basic)

Even at 50% occupancy of $250 per pad and with a 50% expense estimate, I'm making $45,000 net which would make it a 37.5% net ROI

What am I missing gang?

Grazie Mile