Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Mobile Home Park Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 5 years ago,

User Stats

6
Posts
3
Votes
Ryland Clay Parker
  • New to Real Estate
  • Houston, TX
3
Votes |
6
Posts

Mobile Home Park - Deal Analysis

Ryland Clay Parker
  • New to Real Estate
  • Houston, TX
Posted

Good afternoon everyone!

I'm new to real estate investing and am grinding to secure my first passive income property. In my search, I came across a mobile home park in my area that appears to be very well maintained and cash flow positive according to the financial paperwork on the property. However, I'm struggling to analyze the deal properly given that the sale includes the primary residence of the seller.

Also, the listing price is based on CMA and not the actual income.

The "quick" of it is as follows:

Listing Price is $775,000.00

  • Property is completely fenced in with a gated entry.
  • 10 Mobile Homes (Range from 70's- 90's models & Park owned) all on concrete slabs with individual sump and septic tanks.
  • 1,800 square foot wood frame home and a park office building.

Current Lease Payments = $5,405 x 12= $64,860

Expenses= $14,427/year (not including home expenses)

Based on current CMA:

Lease Payments = $7,100.00 (mobile homes) + $1,500.00 (3/2 residential home) = $8,600.00 x 12 = $103,200.00

Current Cap Rate: 7% (based on listing price and not including home rent income)

CMA Cap Rate: 11% (based on CMA + 16,000/ year expenses)

I believe the property to be over priced but could be worth the investment, but want to make sure I'm understanding the "deal" correctly. 

Any good advice is appreciated!

Thank you for your time!

Loading replies...