SC Mobile Home Park

[Uwe S.]

I found an ad for a MHP in SC at another REI Forum, this is the ad:

" We need to move this property so that we can invest in another opportunity. It's a Mobile Home Park in SC. It needs some work but has the potential to bring in about $3k. It has some cash flow now! Here are the details:
will Finance....No credit Check, No qualifying
Purchase Price: $95k Down Payment: $3500
Monthly Note: $995.00
We will do this under a lease purchase.
We NEED to move this and close on it no later than two weeks "

I wrote with the seller and its an 8 space park with possible 2 more. 7 spaces with park owned mobile homes (rent $350) and 1 vacant space.
3 of the mobile homes are rented, 4 vacant. These 4 mobile homes needs approx $5k for repairs. There is a waitlist for the vacant homes said the seller and the lease time is for always for 1 year.
GI is $29,4k with 100% occupancy, the NOI should be $17k.

Is this an rentable MHP? The price is negotiable and the monthly lease rate too.
If I buy the Cleveland Mixed Building I still have some money for that scenario. Only these properties be 600 miles apart.

-Uwe

[Bud Johnson]

Uwe, I think it certainly presents a good possibility. In running the numbers it looks like the Note is written at 12.75%. I would bet, based on their motivation level you can improve on what they are asking in order to enhance the deal for you.

Also, what research have you been able to do concerning the area, and other factors like:

1. How long have they owned it?
2. How much land does it include?
3. Will any of the monthly lease pmt be credited to you toward the purchase?
4. Will they turn over to you their waiting list of potential renters?
5. What is your long-term strategy for the park? Hold, Fix-up & Rent, or Hold, Fix-up and Sell via owner financing? You could always sell the seller financing if you decide to "cash-out" completely due to the distance.

Just a few thoughts. Hope this helps. Take care,

BTW, where in SC? I previously lived in SC a number of years and continue to do investments there.