Updated over 2 years ago on . Most recent reply
western montana deal analysis
Hey all, I have an accepted offer on a 19 unit mhp in rural montana and now that SGR im in need of some opinions. This would be my first rental property and first mhp. Current rents bring in 6650/mo and according to my figures debt service and all expenses should be under 3500/mo. Current rents are all about 100/mo under market rents. My concern is its location. Its in a town of about 600, 20 min from a town of 1200, 45 min from a town of 5400 and 60 min from kalispell which is apparently 26,000 but theres probably 60k in the kalispell metro area.
The park is currently fully occupied and apparently the seller has a waitlist! He also said "they all get checks". So im guessing its all retired/disabled folks on fixed incomes. Im afraid that even though this thing currently cash flows nicely, and rents could even be bumped up a bit... I may have issues filling the spots once they leave. Kalispell has been growing rapidly the last few years and prices are absurd so this is definitely a cheaper alternative... but who wants to drive 45-60 minutes to work?
Perhaps I could pivot and make it into an rv park or even kind of a remote work community if occupancy really fell off down the road. What are your thoughts?
Thanks so much!