Analyzing mobile home park

[Brian Brokaw]

I currently have 3 mobile homes I am renting out that I paid cash for they are not in a park. I live in Arkansas and have ran across an elderly couple wanting to sell their mobile home park. Below are the numbers I have what is your opinion good deal or not any suggestions or ideas would be great. Asking $295,000. Willing to seller finance with $75,000 down. 20 mobile home lots 18 park owned homes 2 lots rented for lot rent. Total gross income $8,500 w 4 units vacant if fully occupied gross income $10,000. Monthly expenses. $200 direct tv for 20 units she said this was incentive for renters, taxes $200, electric $175, $200 water park is on well so electric for well and monthly testing by health dept, $250 insurance ,$150 trash, $180 sewer $1000 maintenance she allowed for this. The mortgage terms haven't been worked out yet but payment should be around $2500 month. Mortgage can be adjusted if needed to make numbers work. What r ur thoughts. They r looking to finance to supplement their income

[John Arendsen]

@Janene Tompkins is spot on. Due diligence is your most critical task at hand. There are a lot of variables in owning a MHP that you don't always see on the surface. You really need to have the park thoroughly inspected by an experienced MHP inspector. Infrastructure and location are the two most vital aspects to consider.