Mobile Home Park Possible Purchase Assistance Needed

[Justin Escajeda]

Hello Community, my partner and I have been working on a MHP deal for a a couple weeks now and would like any advice anyone has on it.

-asking $350k (which is negotiable)

-22 spots (with expansion possibility)

-80% occupied (0 park owned)

-current lot rent: $230/month

-separate meters for utilities

*the lot rents can easily be raised to $300, I got current cap rate at 17% and if raised to $300 it would be 22%. Unfortunately, it is not public sewage, Im wondering about the possibility of someone inspecting condition of septic. Also, I know environmental issues can be a large problem, if anyone has any advice on that subject it would be much appreciated! Manager lives on site in a house (not sure if she pays anything). 40%expense = current:$303,600.00 @$300/month : $396,000.00

Thanks!