What's the catch with this deal? Why is it still available?

[Nick Pavlakis]

Hi BP members,

Although this is my first forum post, I've been listening to the podcast A LOT.

I live outside of the US, but I'm planning to move to Seattle (I am a software engineer) in a few months. I want to get involved in real estate, so I am analyzing all kinds of properties to get familiar with the process and the different markets and niches.

I recently ran into this: https://www.zillow.com/homes/for_sale/house,condo,...

(I don't mind sharing it - I won't get it anyway - so if it is truly a deal and a BP member can get it, all the better)

Details (read the Zillow description - the listing details are wrong): 

• Address: 6610 52nd Avenue Ct W, Graham, WA 98338
• 4 mobile homes for $156,000
• Each home is a 4bd/2ba with laundry
• Current tenants pay $1700 average rent per home
  
• Space rent is $700 per lot
  

The numbers (per month for all 4 homes):

Total gross rent: 4*1700 = 6800

Total lot rent: 4*700 = 2800

PITI: 860 (this is for the full $156,000, i.e. all 4 homes)

Vacancy - 15%: 1020

Property management - 10%: 680

Maintenance - 10%: 680

CapEx - 5%: 340

W/S/G (this is a wild guess - I have no clue): 4*50 = 200

Total expenses: 6580

Total cashflow: 220

I feel like I've been quite pessimistic with the estimations (e.g., 15% vacancy), and it still produces a positive cashflow. Considering that a buyer could possibly also negotiate a better price and/or pay cash and avoid the mortgage expenses since the amount is quite low compared to other properties in Washington state, it could be much more lucrative. I know that the area is a very cold market, but still...

What am I missing?

[Scott Egbert]

They just bought the homes also a few years ago I heard.   Could just be a flip houses.   

Maybe the park has a Meth problem?   Maybe the owner is selling the park and you'd be stuck moving them?   Maybe they own the park and they are about to raise the space rent.  Two are vacant BTW,  why is that?   Is the park a pit?   

Seems fishy to me but I always think that way at first until I feel I know the real reason people are selling.  Especially if it seems like a great deal. 

Good Luck!