New To the Mobile Home Industry

[David Marasow]

Dear BP Community! I'm experienced in many different types of RE deals, V add MF, industrial, and repositioning. I've never forayed into MHPs before - I'm looking into a park with 46 slabs in CT. I know in my gut that it's a great deal but I could use some help!

It's a 78 YO guy looking to retire and move down south.

46 Slabs, PP 1MM dollars - included in the 46 slabs is an SFH worth approx 250k. (The house would need to be subdivided in order to sell or can be rented as-is for 2k a month). City sewer and water.

Currently, only 31 Slabs have Tenant owned homes on them currently renting at $380 a month Current gross is $140k expenses are 90k NOI as is 50k.

Multiple Comps up the block and within a 5-minute drive are renting for $435-$450 a month. (Truthfully all the comps are all 100% occupied and I strongly feel $500-$550 is not out of the question either)

The business plan is to get all 46 slabs at $435 and the house at $1500 a month for a total gross rent of 258,000 minus 7% vacancy and 100k for expenses at an 8 CAP the deal is worth 1.75MM (Current standard in CT is a 6 CAP but I believe that will go up with rising rates so I'm UW at an 8 CAP).

The deal needs to be all cash because Fannie Freddie only does deals over 50 slabs and debt nowadays is rough anyways, especially in this case I would not make enough to cover debt at 6%.

Here are my challenges!

1)Where/how do I test the grounds to make sure everything is kosher? Sewer and water lines, power lines.

2)How and where do I buy 15 MHs can I use debt vs all-cash etc? 

3)How long does it take to intake and get them delivered?

4)What's the eviction/Foreclosure process IN CT Please don't tell me what happens in another state, if I up the rent slightly and then the community starts a revolt and they don't want to pay?

I just need to iron out a few details I'd love to chat with anyone for a few minutes at your convenience and hopefully do some business together!!!

David