Help analyze this deal

[Chris C.]

Don't want to get to wordy but would like some other experienced guys input on this deal.  I am an experienced investor but want to know what others would pay.

6.46 acre Mobile Home Park

20 minutes west of Columbia SC.  With 2 minutes of Interstate 20

C class area

Decent industry and jobs in the area.

14 lots

Individually metered power and water

Each lot has it's own septic.

7 Lots rented for $150 mth (Market could handle higher possibly to $200)

5 park owned homes

4 Single wides and 1 double wide

3 rented for $400 per mth

1 rented for $475

1 Rented for 375

2 vacant lots supposedly have all utilities just need a home sited

Expenses:

community lights 960 yr

taxes 2288 yr

ins 1000 yr

no expenses provided yet for maintenance or vacancy.

Supposedly mostly long term tenants.

Asking $175,000

[Thomas Gardner]

Doesn’t sound like a horrible deal at first glance. I’d need to know what the terms are though. How much down, is the seller holding the note & a Class C area is a little concerning. I’d want to have a good feel for how the city / county is looking at parks like this in the area as well.

Most of the park owners I work with are interested in LOT RENT. Not maintenance headaches. They work with someone like me if they can’t get the rental units flipped into resident owned. Group like mine comes in gets the homes up to snuff then sells them but finances them internally. Then we get the cash flow from the note and the park owner gets the revenue from lot rent. Ideally you can do this yourself, get them flipped and paying you on a note but they own the home. Pride of ownership = better maintained homes. If they default, just repo and do it all over again.