Investor in WA State - Mobile Home Park Analysis

[Jose Lira]

Hi everyone,

I wanna check with you guys what you think about this. The MHP has 6 units (4 MH's and a single home divided in 2 units) inside 2 parcels that sum 27 acres. The property can be subdivided into 88 lots to either add more MH's or rent out/sell the lots. All units are under septic and private well. The MHP permit is currently just for 5 acres but the zoning allows the use of the rest of the parcel to develop it.

Current rent collected for all 6 units  = $5,485

Current land-lord expenses = $1,265

Variables (vacancy, capex, mgmt) = $2,030

County assessment = $668,600 

Asking price = $700,000

The property is well located but uninsured. Tenants are required to buy renters insurance.  

What do you guys think at first glance? 

[Joshua Diaz]

Are those rent amounts and expenses a monthly amount or a yearly one?

Take the profit you get after all the expenses for a year and divide it by .10 for an idea on what the price would be.

700,000 seems way too high at first glance