Would you make an offer on this park?

[Ashleigh Gipson]

Looking at a park for approximately 2.4 million that is on septic tanks and well water. The Property has a total of 15 septic systems and 4 pumps. Sewer and water are available at the road but the property would have to be annexed into the city limits.

Maintenance man is paid $2,400 monthly and mows the grass.

60 units 56 are rented

Weekly rents

Brick home also on the property

78 storage units

Office

Laundry Mat

Metal Shop

Metal Barn

50 acres undeveloped

County has approved 7 new sites, 4 of which used mobile homes have been moved in but not set up yet, septic system is already in place and electric company has been paid to set the poles.

Owner pays first $75 of utilities per month

Monthly rents come to $33,553.84.

Park is managed well by the owner and has mostly long term tenants, rents are about $40-$50 less per month than other parks in the area.   Area is experiencing major growth, average home sales price $245,000.

Not sure of profits on storage building yet but the numbers I ran for rents minus expenses give $241,587.65. I am coming up with a cap rate of 10% but this is with charging weekly rent and our goal would be to slowly transition into lot rent. We have been reading up on mobile home investing and plan to take the course from mobile home university soon.

Would you proceed?

Thanks in advance!