All Forum Posts by: Andriy Boychuk

@Bill F. I do not have but I will ask him for the information. I will share it later. 

@Bill F. I 100% agree with @Account Closed if it is your first deal, you should not buy on private utilities. The cost of fix or replacement can destroy you. Here are some numbers I have from a fellow investor who specializes in private utilities. 

"Package plant operation and maintenance will generally run you 40 to 60k a year for package plant for a 50 to 100 space park (15,000 to 30,000 gallons per day). It really doesn't matter if it is 50 or 100 spaces cost will basically be the same. Cap ex on sewer system: package plant break down 500,000, lift station 15,000, 3000 ft 6" mainline 180,000, 100 service laterals 20,000 total $725,000 with a 30 year straight depreciation model that is $24,000 per year. So my number is operation about $50,000 a year plus $24,000 per year for a total of $74,000 per year. This of course assuming the package plant and sewer mainlines are new new which we know is not the case. However you get the idea. By the time you add in the other $70,000 of expenses you have listed above you pretty much break even with 50 spaces at $300 per month. Here are some numbers for well water system operation and maintenance $20,000 to $40,000 per year. Cap ex 2 wells at $20,000 per well, 2 pumps @ $5000 each, 2 pump controllers @ $2500 each, 40,000 gallon reservoir $150,000, mainline 3000 ft of 6" mainline $180,000, generator $20,000 total $407,000 30 year straight line depreciation $13,500 per year. So total drinking water and waste water per year with out cap ex $80,000 with cap ex $117,500 per year. So add about $50,000 per year for general operations of the park and you come in at $130,000 with out capex and maybe $ 177,000 with cap ex for water sewer and park infrastructure at $100.00 per lot."

@Austin Soros you should contact @John Fedro and/or @Rachel H.

@CJ Witmer typically if you have a park 30-40+ units you will have more people who would want to partner up with you. I do not have much information about the small park but it would be a little bit hard to finance 7 unit park. Do you have any additional information about this park? 

- lot rent

- utility types

- who does pay for utilities (water/sewer/trash)

- what is the market lot rent?

the rule of thumb formula 

# of lots * 12 months * lot rent * 10 cap rate * 0.5 (expense ratio for small parks) = park price

@Bill F. yes, he specializes in this. 

@Bill F. yes, it is correct. However, it is my personal preference. My friend owns 400+ lots on well and sewer treatment plant and he likes it. Also, I know an investor who looks only for parks on private utilities.

@Phillip Huber are they just expensive or they ask more than the parks worth?

@Alan Wolkov can I ask you why in South Jersey? It looks like you live in PA. You might find more opportunities there and RE taxes are much lower. 

@Laura H. I agree the Bootcamp and MHP Academy are great. The Bootcamp saved me from buying 99k 7 lot park with only 3 occupied lots and MHP Academy helped me to buy my first park. 

@Anthony Angotti if you find a right deal, it is not hard to find money in this industry. I know it sounds like a cliche but MHPs are very hot now. 

@Charlie McClskie I spoke about the topic with my friend this morning. The shocking fact was for me that based on his experience Clayton home are not very good quality. However, he said it all depends on the location where they were built. I know TRU Homes are the most affordable mobile homes on the market but I might be wrong. 

@Bill F. I am answering the questions only from the personal preference and based on some experience. 

1. Would pick either one (septic or well) only if the public utility connection available nearby the park. I would not invest my and my investors' money if there is no ability to connect to public sewer. 

2.  The cap X. You need to reserve a lot of money for the system replacement. In this case, you have to buy a park with a great discount to do so.