12 Unit Mobile Home Park

[Derek Kerley]

Here are the details. 

12 Unit mobile home park in Northern Georgia. Of the 12 units/pads - 2 are livable (rented @ $550/month), 5 need approx. $1k-$3k/unit in rehab and the remaining 5 pads are vacant. The asking price of $120k includes all the trailers on a 1.3 acre lot. I plan to sell the 7 trailers once all are livable and only collecting lot rent (do not want the hassle of monthly trailer repairs). I am expecting lot rents to be $250/month (12 x $250 = $3,000 x 12 = $36,000 annually) and estimating approx. $22k in annual expenses for taxes/insurance/maintenance/water&sewer/management and $1,200/yr for Misc. 

Wondering what the group thinks of this as an investment. Keeping in mind this would be my first mobile home park and it about 8 hrs away from my home. I have also read that long term the only value for a mobile home park is the land and can be hard to sell in the future. 

Thank you for your thoughts! 

Derek 

[Jefferson Lilly]

Run, don't walk from this deal.

Get yourself to Bootcamp to figure out why to stay away from properties like this (bad location, bad occupancy, too much rehab).  This is probably not a park for anyone to own; it is certainly not a newbie's first park.

My 2 cents worth,

-Jefferson-