16 unit MHP + Triplex $92,000. What's your opinion/ideas.

[Charlie Price]

I welcome any ideas/opinions differ by strategies or general comments on this small MHP potential deal I'm looking at.. This is a pretty much abandoned MHP. Uncared for maybe 15 years or so! 16 MH lots + triplex. 2.3 Acres - City water and Sewer on 9 of the lots, city water and septic on 7 of the lots. Actually sits on 2 separate adjacent parcels. Dirt roads. No concrete pads. Mobile homes are of the 70's. Pretty much Totally dilapidated. Could maybe save 4-5 of them with extensive rehabs. Otherwise they are trash. Triplex is fixable and also on city water & sewer. To my surprise there is actually 3-4 people living in the park. A couple of them for 10 years plus. The one tenant I met said he is paying $300 per month, another said he is paying $250. They said it is quiet and safe. I also talked to a next door neighbor right next door to the park. She said she pays $550 per month for a older modest 3/1 sticks & bricks home. She also said it was safe and quite. She said that she has a friend that wants to move to the neighborhood, but could not find a place to rent nearby. So I believe there is demand, at least for clean decent affordable rentals. There is a Super Walmart about 1 mile from this location, and a daycare across the street. The owner is asking just $92K for it both parcels and abandon Mobile Homes "as is". Never done a mobile home park, but rehabbed and leased up plenty of multi family fixer uppers. Just finishing up on a 30 unit complex I did over the course of 3 years with. Mostly my own $$ and putting incoming rents back into property. I feel I could turn the park around slowly in a few years using current and future rents as I fix it up. Also using some capitol from current cash flows from other rentals I have. As far as exit strategy a few years down the road after fixing by up and leasing out, I'm not sure how marketable a successful 16 unit Mobile Home Park, plus triplex, would be though once I fixed it up and got it all rented out. With utility repairs, concrete pad upgrades, electrical repairs (most all above ground electrical poles/meters are near trashed.), repairs on triplex, along with the numerous miscellaneous repairs that always come up there would easily be another $75K to get things, including triplex fixed up and ready to move in 16 mobile homes. Then there is the aspect of the mobile homes. Without much looking I've found a 3/2 basic MH I can get for just under $40K deliver and set up. If I filled the 16 sites with these I could rent them for $750-$800 per month. Or possibly owner finance them to new buyers. Trouble with this strategy is I'd need $640K or so to buy the mobile homes! Another idea for the mobile homes would be to buy used ones over time have them moved and rehabbed if needed. By the time I'd move the mobile home and get it rent/sale readying d set up I'd probably have about $15K +/- as or so in each. And then I'd still have old Mobile Homes and not most desirable. Per Bestplaces.net 2BR Apartment/Homes in area rent for $690 per month. 3BR @ $995. 4.1% unemployment and Median home Price is $93,400. Ya gotta figure if Walmart put a store a mile away it's got to be a somewhat decent potential. If anyone is interested in a potential JV partner I'd be looking for initial cash infusion, for purchase and initial cleanup. Once we got the purchase and initial cleanup done we could use cash flows to put back into property and build up slowly over a few years. The property is about 45 minutes from me, and 1/2 hour from my 30 unit apartment complex. I could manage the whole process here locally, and be on site regularly. If looking for something a little smaller I also have a line on a very similar deal that is just 7 trailers. In same/similar status as above. Same city, different area of town. City water & sewer. I'd be guessing, as it's not officially for sale, but $30K purchase and another $70K to get up and running including repair of 2/1 rental on property, clean up and get MH pads move in ready, and purchase of 1 new mobile home to get started. As far as me, I've been investing, rehabbing and being a landlord for 20+ years. My wife and I have 2 out of town triplexes that we manage remotely, a 30 unit apartment complex (local) that we are just finishing up on the rehab, and are pending on another 8 unit apartment complex here locally. My credit is around 740 and our net worth is $2M +/-.