Mobile Home Park Purchase

[Abbi Armstrong]

I have $450K cash in hand. I'm looking at purchasing a mobile home park for roughly that amount. The park brings in $2850 in space rentals, $450 for one house on the property and an additional $1350/ month in owner financed trailers. The space rents could definitely be raised by $50 per space for an additional $950/month. Every space is individually metered, public sewer and water. The reason I want to purchase the park is as a single mother, this very hands off option seems more attractive than purchasing duplexes or SFR's where maintenance will be a constant issue. I plan to hire someone to property manage for me at 8%.

Now for the million dollar question: Do I buy it with cash, putting all my nest eggs in one big basket and risk that it might depreciate but skip dealing with the local bank that thinks investing in a mobile home park is a bad idea anyway? This way everything I bring in is profit after I pay the property manager!

OR

Do I put $350K into it- keeping $100K on hand for another deal in the future and take out a $100K loan for a period of ten years at a payment of $1100/month?