HELP WITH MOBILE HOME PARK PURCHASE

[Giancarlo Ameglio]

Hello,

I am analyzing a deal for a 5-unit mobile home park. It is going for $170k and it's generating $3000 in revenue.  It has the potential for small improvements like designated parking areas and fenced patios. It also has room for more mobile homes or the remaining space could be turned into an RV rental. What recommendations do you guys have for these kinds of properties? I have never owned a mobile home park but the numbers in this deal look good. I am not an expert but I would not be surprised if mobile homes don't appreciate a lot over the years. Any recommendations are welcome.

After running my analysis on the property these will be my numbers : 

Earnings

$1,122 /mo

Income

$3,000 /mo

Expenses (taxes, insurance, loan, management fee)

$1,877 /mo

CoC ROI

31.35%

• Info
• 3,118 sqft of living space.
• Lot Size Dimensions: 280x84x178x154x135
• Area
• Florida

[Dave Rav]

@Giancarlo Ameglio yes, I have done the RTO model.

There are some stats out there reporting that up to 80% of prospects dont see it through to the end.  And thats ok, you just complete whatever repairs are necessary at time of turnover, rinse and repeat.  Just like in the mortgage business, try to get as much skin in the game as possible (those who put down more are theoretically less apt to default).  However, there typically comes a point where getting them to put more down just doesn't happen.  Maybe with stick-builts higher DPs are possible; used mobile home "buyers" typically cap out beyond a certain point.  My theory as to why = those with more money in the bank, have more options than purchasing a used MH.  In my experience, my DPs have ranged from $2k to $5k for used mobiles.  Older MHs are especially harder.  

All the best!