Mobile Home Park Thoughts

[Mark Gruetzmacher]

Hey everyone,  I wanted to get some thoughts this from you guys.  I usually just buy mobile / manufactured home and either fix and flip or use as buy and holds.  I came across a lead today on a lady that was looking to sell a couple homes so we got to talking and it turns out she owns a 18 unit MHP in a small town an hour away from me.  As it turns out she is either wanting to sell the homes out and then sell the land or sell the park as a whole.  Said she owned it since the early 80's and is just tired of it and she is no getting any younger.  It got me thinking about the park but I am not sure what questions to ask or what look  for.  Not sure on the details yet but below is what I know so far. 

Small town under 5K people

18 spaces with 3 empty's

Of the 15 occupied spaces the owner owns maybe 8-9 of the homes themselves

Of the homes they own, most are 70's I think with in the 80's and one 2000.

She mentioned that she is selling some of the others on payments to the tenants

There is a metal  maintenance building on the property as well.

Lot rents are $200

Park has city water and sewer with shut offs for each home. I am thinking it is master metered.  I think new lines were done in the late 80's

I am thinking the water, sewer, garbage is in the park rent.  Not 100% Need to ask.

Owner is open to owner finance but not sure on the terms maybe  under 8% but I think they are looking for a big down payment.  $50k-75K  No idea on any other terms.

I need to get more info obviously. I was mainly talking to her in regards to the homes she was going to sell but then got to talking about the park. What kind of CAP rates do parks usually have? What kind of value is it worth? Does land value come into play or is it all jus CAP rate and NOI for the value? Ideas? Thoughts? Questions to find out?

Sorry this post is kind of vague.  I really appreciate any info anyone can give.

[William Noel]

Hi Mark, 

That's an ideal way to find a park, nicely done. 

Parks with a small number of lots can be hard to cash flow, which can work to your advantage because not many people want to buy it. 

I like creative financing with a project like this where you can't get burned. A lease-option to give you time to get is cash flowing or small down. 18 lots x $200 doesn't give you much to work with, even if you like and manage on site for free. You should practice your negotiating on a park like this, not much to lose. 

Good luck with the park, I hope you can make it work. Keep your nose to the ground! 

Give me a call anytime if you want to share strategies. 

[George N.]

Any idea what she wants for it? City water/sewer is a good start. The market is key, I don't think a 5K pop town is a problem but what's housing like there, is it a tight rental market? What are apartment rents and other parks? Is there upside in the 200 dollar #. Lots of people aim for a 10 cap on parks but personally I think that's tough to come by especially up here in our part of the world.  That cap would be based on a 30-40% expense ratio and is based only on occupied lot lot rent. You would add a reasonable price for the homes on top of that, sounds like you should have a good idea what they're worth. 

There are lots of other DD items to clear. Is it zoned properly? How does the town feel about it? Is it on master meter gas or electric? What are the roads like? What are the sewer lines made of? 

I'd head over to Mobile home university and check their stuff out. You're in the MH world so buying the 30 day due diligence book and reading would make you smarter on the industry as a whole regardless of whether you buy this park or not so check it out. 

Seller financing is great and if you bond with a seller you may be able to get them to come down on that down payment substantially. You're describing the classic mom and pop seller. If you explain the benefits of a guaranteed monthly income in old age versus a chunk of cash and nowhere to put it in today's interest rate environment she may come around. Key is that they like and trust you to not run the place into the ground. At first glance as someone who is working mostly homes this sounds like a promising first step into the park ownership world. It's somewhat small but nearby, seller carry is on the table, and so far sounds like no deal killers. I'd dig into it more.  

 

[Andriy Boychuk]

@Mark Gruetzmacher I usually offer what makes sense for me and I know for sure it is fair to the seller. As @William Noel said, there are not much competition for 18 units parks. 

[Mark Gruetzmacher]

@William Noel @Andriy Boychuk @George N. Thanks for the  replies.  I was hoping for a reply back from the seller.  She gave me her email so I emailed her asking to give me some info on the park rents, trailer info, trailer rents, etc.  She might not check her email daily either so I will give it a few days.  Might have to take a drive there and meet up with her and get some hard info.  

One of my concerns would be managing the park since I don't live right there.  She said it runs pretty smoothly right now but who knows.  I am just over an hour away.  The more you think about it the tougher it sounds.  My market is tough because the city is not that big and the next largest city is 6 hrs away.  Our whole State population is only 850K.  Prices here locally are high and the rent are barely 1%, usually closer to .75%.  That is a lot of the reason I stick to mobile homes and now looking outside my local area which consist of just a handful of tiny towns.

 If this was in my local area it would be pretty expensive.  I know of a 12 unit park selling for over $350K.  I think she is looking for about 200K with maybe about 6-7 homes included.  Not sure on rent but those homes I am guessing would bring in at least $500 each. Lot rents I am guessing are good at the $200.  My local market lot rents are about $250-350.  I know lot rent in the small town about 10 miles away  from me is $125.00 so they do vary.

The park is has city streets are 3 sides of it that are paved.  The park roads are basic gravel from the aerial pictures I could see.  Looks to be classed as Urban Commercial according to the county.  

Thanks again for the replies.

[Tamara V.]

Try listening to the BP podcast about exactly this. I listened to podcast #111 with Jefferson Lilly. Very interesting stuff. He talks about cap rates and actual park finance/management. Also check out podcast #75. I have not listened to that one.

Good luck!

https://www.biggerpockets.com/renewsblog/2015/02/26/bp-podcast-111-unique-profitable-real-estate-niche-youve-never-considered-with-jefferson-lilly/

https://www.biggerpockets.com/renewsblog/2014/06/19/bp-podcast-075-fedro-mobile-home-investing/

[George N.]

I wouldn't worry about Park management,  parks are pretty simple people run big outfits across the country. You have a Tenant collect and deposit rents and report any issues to you for a discount on lot rent and an hour away is nothing. Not much happens in a park.  Again,  at first glance 200k with homes doesn't sound bad at first if the  DD checks out. We both know homes aren't cheap up here even relative junkers. I'd dig more.  It's right at the threshold but close enough to me that I may be interested.  A lot depends on the health and housing dynamic of the town. 

[Andrew Nissen]

Hi Mark,

I have a small park near my  home but am looking for more and farther away, they can be great investments.  I learned a lot from Frank and Dave at Mobilehomeuniversity.com and I highly recommend attending one of their boot-camps.  Easily saved me 3-4X the cost of the boot camp in the latest park I'm placing an offer on.  

I'd recommend NEVER letting someone else collect rent for you and NEVER taking cash. There's just too much opportunity for you to get ripped off.  You could have tenants make a deposit in your bank account (branch near the park) or get the rent to you in the  mail each month.  There are also quite a few remote management/collection services popping up that would be helpful.  See Tony Ferris' book "Park Place" (Amazon e-book) for lots of tips and great advice on remote park management.  

Good luck, let me know if I can help you in any way.  Andy

[Sean Kremer]

I may be able to help a little here as I currently own a few of these babies. If the parks don't have newer homes in it you will probably need to run it yourself. Believe me, these parks are a goldmine, but it is NOT money for nothing. You need to actively be involved in them. Most  tenants that live in older trailers are are going to be one step above dealing with children for you. Their lives are almost always in turmoil....they  are almost always broke, in the process of Divorce, in the middle of legal action and probably living off of the government. (There are exceptions to this rule but just remember what the nice lady told you about being tired and burnt out of it.) She didn't get that mindset because that park ran like a well oiled machine on its own. 

     But again, if managed and maintained properly, these little courts are a goldmine if bought with the right terms.  Just a little insight from my experiences here.....when your young and hungry these are great because the money you can make more than offsets the headaches that you will have. But as soon as you gain experience through life's ups and downs and get to the point where money isn't a problem anymore, you will get tired of the police calling you at 3:00 am because some dude decided to beat the crap out of his wife and threw her out in the snow and the cops want you to come down and open the door for them so they don't have to kick it in. That's what can happen in a town of 5000 or less where everyone basically knows everyone.  And that's one of the reasons you may want to live closer to the park. Plus the fact that older mobile homes take ALOT more maintenance than houses do. 

     If you get an obese person living in the unit, you will need to be good at repairing floors because the floors in them are pressed  sawdust and a fat person will pretty much fall through wherever they step. 

     That being said, I would still buy it if it met your criteria, but please talk to someone that owns a small park first, they will know things you may not that will really help. I hope I didn't scare you off yet because the parks I own may be work intensive, but they are also part of the reason that I'm planning on retiring at 50. By then Ill probably be as ready to sell as your seller is. :) Contact me if you have questions, I'll help if i can. 

Sean 

[Sean Kremer]

Originally posted by @Sean Kremer:

I may be able to help a little here as I currently own a few of these babies. If the parks don't have newer homes in it you will probably need to run it yourself. Believe me, these parks are a goldmine, but it is NOT money for nothing. You need to actively be involved in them. Most  tenants that live in older trailers are are going to be one step above dealing with children for you. Their lives are almost always in turmoil....they  are almost always broke, in the process of Divorce, in the middle of legal action and probably living off of the government. (There are exceptions to this rule but just remember what the nice lady told you about being tired and burnt out of it.) She didn't get that mindset because that park ran like a well oiled machine on its own. 

     But again, if managed and maintained properly, these little courts are a goldmine if bought with the right terms.  Just a little insight from my experiences here.....when your young and hungry these are great because the money you can make more than offsets the headaches that you will have. But as soon as you gain experience through life's ups and downs and get to the point where money isn't a problem anymore, you will get tired of the police calling you at 3:00 am because some dude decided to beat the crap out of his wife and threw her out in the snow and the cops want you to come down and open the door for them so they don't have to kick it in. That's what can happen in a town of 5000 or less where everyone basically knows everyone.  And that's one of the reasons you may want to live closer to the park. Plus the fact that older mobile homes take ALOT more maintenance than houses do. 

     If you get an obese person living in the unit, you will need to be good at repairing floors because the floors in them are pressed  sawdust and a fat person will pretty much fall through wherever they step. 

     That being said, I would still buy it if it met your criteria, but please talk to someone that owns a small park first, they will know things you may not that will really help. I hope I didn't scare you off yet because the parks I own may be work intensive, but they are also part of the reason that I'm planning on retiring at 50. By then Ill probably be as ready to sell as your seller is. :) Contact me if you have questions, I'll help if i can. 

Sean 

   Sorry I just saw that you have experience with trailers, so I assume most of the stuff I just said you probably already know.....Sorry, Good luck 

[Jay Hinrichs]

@Sean Kremer  to funny I just bought a 14 unit park but it has a nice house and an apartment along with it that brings in 1100 for those two.

But the tenants are exactly as you describe.. I kicked out half the tweakers and hauled off half the junkers... Walmart just built a big complex within walking distance of me.

I am going to convert 6 spaces to allow full time RV's  and give that a try.

Its got water and sewer but not individually metered.. I just ran all new power into each one though it was a mess when we bought it.

I think when its all said and done it should bring in about 6 to 7k a month and we will be in it well under 200k.  So will see. but if I got an offer on it once I have owned it a year or two so I could get cap gain or 1031 I would entertain that  other wise just see how it goes.

Its in Eugene Oregon so pretty big metro area. with lots of people and this is I am sure the least expensive place in the entire region to live short of moving back in with momy and daddy

[Sean Kremer]

If I was closer and it cash flowed I'd buy it from you........Be careful and check with zoning before you change the mobile home spaces to rv's. Sometimes if you do this, they won't let you go back to mobile homes, which may or may not screw with resale. Of course they won't tell you this until its too late. On a different note, around here we've been buying FEMA trailers from the GSA. If they have sales in your area they are a great way to get newer model, all electric 3 bedroom trailers anywhere from $9,000.00 to $15,000.00 per unit. We've bought about 12 already and people like them. We are getting $600.00 per unit per month around here. FYI

[Sean Kremer]

Originally posted by @Jay Hinrichs:

@Sean Kremer  to funny I just bought a 14 unit park but it has a nice house and an apartment along with it that brings in 1100 for those two.

But the tenants are exactly as you describe.. I kicked out half the tweakers and hauled off half the junkers... Walmart just built a big complex within walking distance of me.

I am going to convert 6 spaces to allow full time RV's  and give that a try.

Its got water and sewer but not individually metered.. I just ran all new power into each one though it was a mess when we bought it.

I think when its all said and done it should bring in about 6 to 7k a month and we will be in it well under 200k.  So will see. but if I got an offer on it once I have owned it a year or two so I could get cap gain or 1031 I would entertain that  other wise just see how it goes.

Its in Eugene Oregon so pretty big metro area. with lots of people and this is I am sure the least expensive place in the entire region to live short of moving back in with momy and daddy

  Man Jay......a WAL MART right next to a trailer court......it doesn't get any better than that brother. You may house every employee there. Except the manager. :)  

[Sean Kremer]

Originally posted by @Jay Hinrichs:

@Sean Kremer  to funny I just bought a 14 unit park but it has a nice house and an apartment along with it that brings in 1100 for those two.

But the tenants are exactly as you describe.. I kicked out half the tweakers and hauled off half the junkers... Walmart just built a big complex within walking distance of me.

I am going to convert 6 spaces to allow full time RV's  and give that a try.

Its got water and sewer but not individually metered.. I just ran all new power into each one though it was a mess when we bought it.

I think when its all said and done it should bring in about 6 to 7k a month and we will be in it well under 200k.  So will see. but if I got an offer on it once I have owned it a year or two so I could get cap gain or 1031 I would entertain that  other wise just see how it goes.

Its in Eugene Oregon so pretty big metro area. with lots of people and this is I am sure the least expensive place in the entire region to live short of moving back in with momy and daddy

  I had a park that wasn't individually metered, we made boxes for the meters to fit under the homes so that they wouldn't freeze and made each one seperate, also had to put curb stops outside the skirting so the city could shut off water without my assistance.  We did all the work ourselves but it is the only way to go to avoid people sticking you with water bills, plus they'll call you when the toilet is running because they don't want to pay more for it. They never do this when your paying the bill. 

[Mark Gruetzmacher]

1. Ok here is an update with a little more info.  The park is 17 spots total with a small 16x16 (estimate)  metal building for storing stuff.  It is on City Water and Sewer with a master meter for the whole park.  Water,Sewer, Garbage are charged to the tenant in the lot rent price. So right now it breaks down to $140 lot rent and then $60 for water,sewer, garbage for a total of $200 lot rent.  Here is a break down of the lots.

• 17 Spots total which consist of the following.

1. Lot1- Privately owned home collecting $200 lot rent
2. Lot2-EMPTY
3. Lot3-EMPTY
4. Lot4-EMPTY
5. Lot4A-Private owned home collecting $200 lot rent
6. Lot 5-Home sold on payments with about $15,000 due $200 lot rent plus $350 payment toward the 15K
7. Lot 6 Park Owned 70's model collecting $200 lot rent and $225 =$425
8. Lot 7 Park Owned 80's model collecting $200 lot rent and $300 = $500
9. Lot 8 Sold on Payments getting $200 lot rent and $300 toward payment Not sure on balance left.
10. Lot 9 - Vacant-Home owned by park and need fixing up to rent.
11. Lot 10 - Park owned 70's model  collecting $200 lot rent and $225 = $425
12. Lot 11 - Private Owned collecting $200 lot rent
13. Lot 12 - Vacant-Home there but the people abandoned it. Need to check into this issue.
14. Lot 13 - Private Owned collecting $200 lot rent.
15. Lot 15 - Park owned 70's model collecting $200 lot rent and $300 = $500
16. Lot 16 - Sold on payments with balance of $3700. $200 lot rent and $300 payment towards the $3700.
17. Lot 17 Park owned but renter might by it on payments $200 lot rent and $300 =$500

Land taxable value is $72910.00 and Building and homes owned by the park is $38610.00 per county records.

Total property taxes including the homes is $3558.00

Liability Insurance  $714.00 / yr

Mobile Home Ins.  $1135.00 / yr

Water/Sewer Bill  $5900 / yr

Trash Bill              $1900 / yr

All homes have their own propane tanks as there is no natural gas in town.  Tenants pay for their own gas in the tanks.  Park pays for the tank rental of like $50/yr per home so that's another expense.  Electric is all separately metered as well.  Water is a master meter and each home has a curb stop that I can shut off or turn on.

My thoughts would be to try to find homes to go into the 3 Empty lots or get people to move homes into the lots.  My thinking was to find home myself so I would have more money coming in but that does come with more work on my half.  On such a small park the lot rent alone would not amount to much.  Since it is a small town, rents are cheaper as well so there is not much there and I wanted to make the most of what I could out of it.  I have homes in parks here by me but there is only a limited number of parks and lots open I could use then I am stuck.  My rents are larger here so the gross profit is better but limited like I said.  At first she wanted about $175K.  Then she told me this in a message "Also Mark ignore the price I was hoping for. After you have time to look over the paperwork with the income, just make me an honest offer, I'll consider".  So I think she is a little open to offers.  Not sure what she will do for an owner carry, not sure on what interest rate either or term.  I assume somewhat of a shorter term, under 10yrs I would guess since she is wanting to retire.  With the homes that are there and the balances left on the homes she sold I think you might be looking at about $30-40K of value there if you were to sell them.

With that info what do you guys think?

[Account Closed]

Originally posted by @Mark Gruetzmacher:

1. Ok here is an update with a little more info.  The park is 17 spots total with a small 16x16 (estimate)  metal building for storing stuff.  It is on City Water and Sewer with a master meter for the whole park.  Water,Sewer, Garbage are charged to the tenant in the lot rent price. So right now it breaks down to $140 lot rent and then $60 for water,sewer, garbage for a total of $200 lot rent.  Here is a break down of the lots.

• 17 Spots total which consist of the following.

1. Lot1- Privately owned home collecting $200 lot rent
2. Lot2-EMPTY
3. Lot3-EMPTY
4. Lot4-EMPTY
5. Lot4A-Private owned home collecting $200 lot rent
6. Lot 5-Home sold on payments with about $15,000 due $200 lot rent plus $350 payment toward the 15K
7. Lot 6 Park Owned 70's model collecting $200 lot rent and $225 =$425
8. Lot 7 Park Owned 80's model collecting $200 lot rent and $300 = $500
9. Lot 8 Sold on Payments getting $200 lot rent and $300 toward payment Not sure on balance left.
10. Lot 9 - Vacant-Home owned by park and need fixing up to rent.
11. Lot 10 - Park owned 70's model  collecting $200 lot rent and $225 = $425
12. Lot 11 - Private Owned collecting $200 lot rent
13. Lot 12 - Vacant-Home there but the people abandoned it. Need to check into this issue.
14. Lot 13 - Private Owned collecting $200 lot rent.
15. Lot 15 - Park owned 70's model collecting $200 lot rent and $300 = $500
16. Lot 16 - Sold on payments with balance of $3700. $200 lot rent and $300 payment towards the $3700.
17. Lot 17 Park owned but renter might by it on payments $200 lot rent and $300 =$500

Land taxable value is $72910.00 and Building and homes owned by the park is $38610.00 per county records.

Total property taxes including the homes is $3558.00

Liability Insurance  $714.00 / yr

Mobile Home Ins.  $1135.00 / yr

Water/Sewer Bill  $5900 / yr

Trash Bill              $1900 / yr

All homes have their own propane tanks as there is no natural gas in town.  Tenants pay for their own gas in the tanks.  Park pays for the tank rental of like $50/yr per home so that's another expense.  Electric is all separately metered as well.  Water is a master meter and each home has a curb stop that I can shut off or turn on.

My thoughts would be to try to find homes to go into the 3 Empty lots or get people to move homes into the lots.  My thinking was to find home myself so I would have more money coming in but that does come with more work on my half.  On such a small park the lot rent alone would not amount to much.  Since it is a small town, rents are cheaper as well so there is not much there and I wanted to make the most of what I could out of it.  I have homes in parks here by me but there is only a limited number of parks and lots open I could use then I am stuck.  My rents are larger here so the gross profit is better but limited like I said.  At first she wanted about $175K.  Then she told me this in a message "Also Mark ignore the price I was hoping for. After you have time to look over the paperwork with the income, just make me an honest offer, I'll consider".  So I think she is a little open to offers.  Not sure what she will do for an owner carry, not sure on what interest rate either or term.  I assume somewhat of a shorter term, under 10yrs I would guess since she is wanting to retire.  With the homes that are there and the balances left on the homes she sold I think you might be looking at about $30-40K of value there if you were to sell them.

With that info what do you guys think?

 Tax values are not necessarily indicative of the market value. 

If you are wanting to do it, could be an opportunity if you get the numbers to work.  From your description, sounds like market isn't the best.  On best places.net, what is the metro size, what is the average house price, and average 2 bedroom rent as a start? 

You can't buy homes based on the note value because they could skip tomorrow and you are left spending 5k to fix. Might be an opportunity to pass on expenses , increase rents etc but the rents seem low but the question is that because of the market or rents are below market? 

If you did like a 10 year term. ideally you want it to balloon on a much longer amortization schedule. If you do 10 year straight amortization, your payment will be too high and keep your cash flow minimal ( or worse) paying to own this.  It can work in certain scenarios but this is not one of them. 

First thing is first, if the market is to junky might be a pass so provide more info and can go from there. 

[Mark Gruetzmacher]

On that website, there is no metro size/area.  The closest large town is where I live at (60 miles away) around 70K with a metro size of 129K.  House prices are 85K there and it says 2 bed rent is $741 which I think is really high for that area.  I need to call and talk to some realtors there or check on some housing to see what the cost of rentals are there.  As for the value of the homes included, I wasn't going off what they owed yet, sort of going off what they usually go for around here.  Rents might be a little low but rents usually are in the smaller towns outside of my metro area.  

[Account Closed]

@Mark Gruetzmacher

Im not a big fan of no metro areas.  The idea is you want a certain size metro ( gives you a potential " velocity " of tenants to be able to pull from. When you get into an area that is too small, you are placing a lot of faith in the town. Additional level of risk and makes it less desirable. If you sell, it might be very hard to find a buyer and they might demand a large discount. This is all not to say you should walk but keep that in mind as all RE , you need to know your out before going it.  At a minimum if you look further into this, make sure your price reflects all of that and seller carry terms would be good to have here which it sounds like you can get. 

[Mark Gruetzmacher]

I am kind of digging up this old thread.  Things have been busy for me the last few months with my J.O.B. and I haven't had time to do much.  I have contacted this lady with this park recently and asked if she still wanted to sell it and she wants to meet again.  I want to get a feel of how the park has changed since I first inquired about it 6 or so months ago.  I already have mobile homes but they are all in parks around my area and like everyone on here says, it is better to own the land the home sits on.  So since there is not a lot of cheap land with mobile homes here I have to either keep them in various parks and pay the lot rent or find a park to buy.  There has not been any parks selling anywhere close to me.  I did some across a guy that had 25 spaces but he wanted north of 900K.  I about fell over.  So in the back of my mind I keep thinking about this park here I mentioned 6 months ago.  I totally understand that it might create some work for me and I am ok with that.  My schedule will allow for that.  I have a call into the city planning and zoning for any info they can give me as well and the same with code enforcement.  Everything out here is small town stuff unless you live in either Rapid City or Sioux Falls.  Most towns are tiny so there is no large metro areas really.  But I still keep wondering if I can make something work on this park.  

Does anyone have any ideas what I should check out with the park, what to look for, what kind of rough numbers for purchase or a formula.  I see people toss out stuff but some people says 50% expenses, others 30%, etc.  This park is on city water and sewer so that is a plus.  If someone wants to send me a private message we can discuss it also.  I am just trying to do some more DD before I go and talk with her again.  I did tell her that we would need to sell finance since there is not much out there for financing.  So I am hoping she is on board there.  What is a good going Owner carry interest rate and term?  I am not sure what she will want as money down either.  But it never hurts to check I guess.  

[Account Closed]

@Mark Gruetzmacher

Rough numbers can get you into trouble especially when you get into smaller deals with vacany issue.  For example, doing a quick scan on the deal above , about 30% of your lot rents of 200 are eaten up by your w/s/t/ bills. .

So what is that , 12 homes paying lot rent of 200 a month ( leaving out the home payments ) , 2400 a month in gross rev per month or 28,800 a year. Your expenses above are 15,549.  There is nothing in there for management, legal , mowing any common areas ( if needed) telephone etc.  All small stuff and I don't know the specifics of this park  but then you might be left with 10k per year? Say a deal like this trades at a 12 cap . What is that 83k ( and really i think market would be more like a 15 cap, but just to get you thinking) 

You can maybe allocate something to the homes but that income will eventually run out when those pay off, plus if someone skips and you need to spend 5k to get an 80s home ready, not a lot of profit in that.  Plus I factored in your insurance MH expense and not the income so you can get technical but it really does not have much going for it especially with the market ( from the little we know) . 

All that being said, you have to start somewhere so only you will be able to determine if this is your starting spot. And with your experience with MH maybe for you getting the park filled is no problemo. 

On seller carry. the best is a 0% down fully amortized 30 year term at 0% . That being said most sellers won't take that deal. Something typical on this might be 5 yr ballon . 7 year ballon, 10 year ballon with an interest rate of 5-7%, a downpayment of 15-30% and an amortization of 20-30 years. 

[Andrew K.]

Mark Gruetzmacher what did you decide? Is the seller interested in owner financing? Or have you moved on?

I'm looking for my first park and interested to learn more about your experience.

Thanks!

-Andrew

[Mark Gruetzmacher]

@Andrew K.  For the moment I have passed on the park.  Something came up and I had to use alot of capital to buy out a partner on a house so for right now I am not doing anything.  I think they might of owner financed part of it but I think in the end it would of required TOO MUCH money down($50-75K) they also wanted more money and planned originally thought.  They moved in 3 more homes and wanted another $50K for it.  So for now it was passed on.  Good luck in your ventures.