What are you looking for with this property @Peter Grange ? Why do you only have 5% for vacancy and 6% for repairs? Are you planning to manage this property yourself? (I didn't see a property management fee)
@Dan Barli my plan to for the 1st 5 years is to buy and hold, while saving the cash flow. This area is in central Florida and the development over the past 5 years has been tremendous, both with home and job growth. We will see how development continues as we head to that 5th year. I may repurpose the 5 acreas or build a nicer multi-family. As far as vacancy, these are long term tenants who want to stay. I walked the property and and there are some minor cosmetic needs but nothing major needed now or forecasted into the immediate future. Yes, I plan on managing these as I am more than capable of the M&R items and my wife will take care of the administrative items.
Howdy @Peter Grange
Do you already have financing arranged? This should be considered a commercial deal and require that type of financing. Meaning 25% down and possibly a balloon payment in 5 to 10 years. Financing for Mobile/Manufactured homes is a little different than standard homes. Recommend you double check your financing.
You say you walked the property but how old are the units? Did you inspect the roofs, Hot water tanks, plumbing, septic system, etc... There are many things that can wear out sooner than you think. Is the septic in code compliance? This might be considered a Mobile home park even though it is not identified that way. Be sure to do your due diligence.
Thank you John. Those are all good points. I did not think about the commercial loan based on the number of units. Lots of farm land in this area with a migrant workforce so I really did not consider it being a mobile home park, either. I will dig deeper.