MHP Opinion on deal

[Chris C.]

Have a local opportunity with a mom and pop park.  Would like a little feedback on the deal.

24 Lots

There are 11 lots as lot rent with owner occupied homes paying between $110-175 per lot, depending on how long they've been there one what they can pay. Monthly lot rent is $1800/mth currently. Park has 9 park owned MH; however, only 3 are rented, only bringing in $800/mth TOTAL. Super cheap rents on old small units. So grand total rents currently are $2600/mth. The other 6 park owned MH are vacant, OLD, BAD, and not worth rehabbing. Best to give away or for a few bucks or tear down. Positive thing is seller has wheels and axles and extra land where they could be moved around the corner and torn down on site, while another newer unit could be put on its former lot at same time. No down time. He knows a guy who could tear them down. 

Rural water company. Individual water meters but one water bill. He reads each meter and calculates the water bill each month and adds to rent.  Each have separate power meter and bills. Land taxes are about $1400/yr.  

All lots are 1/4 acre with septic tank.  I need to verify size of tanks and if I can move in 3 or 4 bedroom homes with existing tanks.

Gravel park roads in a country area but easy access to several city centers with industry.  All homes are older but seem to be decent people living there.

All cash $129,900.

Owner financed at $135K with $35 K down, $100 K at 8%. At a 15 year term

As its sits I get an income of about $ 31,290.65 yr

Expenses of about $ 9,855.00 (These expenses do not account much for repairs on 3 rental units as I would like to sell those asap.)

That's about 16% cap if I am correct.

Here is link to my spreadsheet https://docs.google.com/spreadsheets/d/1WMYg4Pykdq...