Mobile Home Park Analysis Help

[Bruce L.]

Hi Guys,

I came across this deal that I'm interested in and would appreciate your feedback as I've never owned a mobile home park before.

Details:

• Mobile Home Park
• Year Built - 1945
• Lot Size - 105,000SF
• Asking Price - $825K
• 60 Spaces
• Comes with Onsite Laundry (6 Washers & Dryer as extra income)
• Yearly Tax Bill: $4,300 (Have to double check, seems low)
• Income: Each space rents for $350/mo (Includes Water, Trash, Sewer)
• 40% vacancy (most of which are long term tenants)

I would consider this a D-Class area and needs rehab work, don't know the details yet. The property is surrounded by other multifamily, residential and commercial properties with nearby bus stops.

If moving forward, I would want to know the following:

• How much to insure property?
• What rehab work needs to be done and how much?
• How much is the Sewer, Water, and Trash Bill?
• How much does the property management co charge?
• What are the comparable rents in my area?
• Why is the property only 40% occupied?

Questions for BPers:

• What else would you ask when analyzing this deal?
• What would be the typical financing terms on a property such as this?

Thanks!!