Manufactured Home Park- Good Deal?

[Andrew Saquing]

Hi everyone,

I am a beginner investor in every sense of the term. That being said, I would like any criticism and comments regarding this deal.

The specs are:

- $1,700,000 manufactured/mobile home park
- 63 units/spaces renting for average $305/month
- 4 houses renting for $600/month
- Parking income, $670/month
- Laundry Income, $330/month

These are estimates, of course, but assuming these numbers to be correct, monthly income would be $22,615.

If I put 10% down ($170,000), that leaves $1,530,000 to be financed. From here I see two possible financing options.

1. Finance $1,530,000 from a standard lender at 5.5%
2 Some combination of lender/seller financing

If I get a mortgage for $1,530,000 at 5.5% over 30 years, monthly payments would be $8687.17.

Monthly Income $22,615.00 - Mortgage Payment $8,687.17 = $13927.83

My questions:

- What other types of expenses should I account for along with property tax, insurance, maintenance, and property manager fees?

By my calculations, before accounting for any other expenses, I will be netting $167,133.96. This seems like a good deal as I will almost be making back my initial investment in cash flow in the first year. I realize that this number is way off because I have not accounted for all the other expense mentioned above. However, it seems after factoring in these extra expenses, there is still a good amount of money to be made. Am I way off in this assessment?

-Is this a good deal?

I realize this is a fairly long post so I would like to thank anyone who took the time to read it. Comments and criticism are also greatly appreciated because I am, after all, very new to this. Thank you.

:wink: