All Forum Posts by: Phillip Merrill

I have used solid ground they were fast and did a good job. Price was good as well

What pressure are they saying is through out the park? Did they do a pressure survey with a pressure logger over 24 to 48hr period at multiple sites? If not I wouldn't take it very seriously. Backflow is cause by one of two causes. Back pressure (pressure is higher on customer side and potentially contaminated water is pushed back into the system, causes are pumps or evaluated buildings or topography) and back siphonage ( pressure is lowered in mainline below that in houses causing a reversal of flow which creates a siphon).  It sounds like they are claiming low pressure is the potential problem. You need to have another professional review their findings to determine if there is a real concern or they are just trying to squeeze you on price.

Here is how I look at your deal. With a lot rent of $318 month your occupied lots are worth 18 to 22k each. 34 lots at 22k each is 750. You have to decide if your willing to pay for empty lots (what's the condition of electrical, water, sewer, cement pad etc at these empties) and the Value of the park owned homes. Add it all together then sub out water line repair or replacement.  I dont see 1.4m value if water issues were fixed at current occupancy but there are so many variable. Is market rent really $320? Do you pay for vacant lots if so what % of occupied value.

Here are a few of occupations of people in our park: retired, welders, certified nurse assistants, walmart, retail. One of our tenants said it best "this is cost effective living"!

Families, single people, couples

Send all the lagoon, package plant, and well water parks our way. The more drama with private utilities the better.

Phillip 

If by aerobic you mean a septic tank with a aeration unit in it then it is really not that big of a deal. If it is a package plant with activated sludge then that is another deal all together. Usually aerobic septic means tank with aeration blower. 

Most likely there is 1 or 2 wells that serve the whole property. There may be 1 large septic or multiple small septic systems each one serving 1 to 2 homes. Find out what is the configuration and then you will know what your options are

Treatment plant is somewhat of a broad term and is used for many types of sewer treatment systems each having different operating and cap ex costs and thus different investor comfort levels. It is worthwhile to do more research when a listing says treatment plant. What type of treatment plant does the park have?

My assumption was that the property was a multifamily property (a mobile home park as that was where the post was) and that property was the owner of the treatment plant. I also assumed the treatment plant served a mhp with significant number of spaces. If that is not the case then disregard my comments. Hopefully the op can clarify if he would like additional feedback. If the property is a single family or does not own the treatment plant then @ Kelly Dewinter is correct no one really cares who they pay as long as the sewer keeps leaving.

What is the yearly gross? There are really three types of parks with treatment plants in terms of economic viability which drives buyer pool. I think it is simpler to think in terms of gross annual revenue instead of number of spaces this is easy to translate into number of spaces for a specific market. The sub 150k, 200 to 250k and the 250k and up.  In the sub 150k the buyer pool will be very very small. Better in the 200 to 250k and best for the 250k and up. Im sure you know that package plants are expensive to operate (skilled operator, sludge, chemicals, lab work...), have high replacement costs, and are subject to risk of increased regulations. Because of these high costs and regulatory risks the park needs to have the income stream to cover these costs and make the headaches worth it