How I determine if a Mobile Home Park is a good deal

[Logan M.]

Currently, I am going through due diligence for a new community. This community has 10 POHs, 4 TOHs, and 2 vacant spaces. There are a few major factors that I consider when looking into a deal-making sense.

Let me first start by telling you why I believe this is a good deal then I will go into my deal killers.

Why this deal works:

1. 0% down seller financed

2. Instant cash flow

3. Rents 20-30% low

4. Loan is amortized over 20 years with a 10-year balloon.

5. Recent infrastructure investment.

6. Great location

7. Plan to sell all POHs, seller financing, or cash sales. Ten homes worth about $50,000 each, all of the homes are occupied.

What would be a deal-killer:

1. Incorrect information from the sellers.

2. Poor condition of infrastructure especially since they have a septic system with a leech field.

3. Problems with the city.
4. Major damage before closing.

Don't overcomplicate this process but make sure you are thorough.