I think I found a deal on a MHP...need input...

[Ryan Doyle]

I'm currently in the initial phases of talking with the owner, but here is what I know so far:

• Rents are about half of market...owner is aware of this.  He hasn't raised rents in over 10 years as he prefers to keep the park at 100% occ.
• There is room to more than double the size of the park.
• Owner is willing to finance!!
• The town in which the park is located is very small, only about 12k people.  However, 20 mins down the road is a much larger town with about 200k people.  In between these two is a military base.
• The park's current NOI is around $60k...or so I'm told - don't have new numbers to verify that yet.
• About 2 dozen park owned homes.
• Most residents have been there over a decade, some 2.

What I don't know yet:

• How easy it would be to raise rents closer to market rent...and how long it would take.
• Need to run a test ad in both the small town and in the large city to see what kind of response I get.
• The actual terms that the seller is looking for...for example...I have seen or been told about 5 different prices for the park...steadily decreasing.
• Have done no DD yet.

Based on just that...gut feelings?  I'm getting excited, but trying to temper it with the fact that there are still question marks.