Need help evaluating my investment 🙏
I own mobile home in North Carolina that's located in a park on rented land. I bought for a deal because of the terrible state it was in. Got it all fixed, looking pretty nice and added appliances washer dryer etc.
Leaving it as a large 3bed 2 bath, I was getting offers for $35k-$40k.
But I figured I want to rent by the room (the local area has enough demand for low cost affordable housing). I split the house and it is now:
- 5bed 2 bath.
- Each room has rented for $560 + $40 utilities
- Grossing $3,000/month
💰NOI approx: $1,445 ($17,340/yr)
Evaluation:
💰 Conservative 16% Cap Rate: $108,375
💰Slight Premium 14% Cap Rate: $123,857
* Property Manager takes care of it all including maintenance, Owner pays Utilities, 1980 build
❓MY QUESTIONS: ❓
- Are Investors out there interested in an asset like this?
- Do you guys think this sale is feasible and realistic?
- What should I be keeping in mind while trying to develop this strategy and eventually selling?