First buy, what do I need to know? Columbia South Carolina

[Carter Bushman]

Hey everyone, I'm asking on behalf of my mother. She is looking at buying a multi-family, here's the info I have.

Units: 9 (6 mobile homes and a triplex)

Asking Price: $170k

Gross Monthly income: $3,930

Lot Size: 1.31 SF

Cap Rate: 18%

Occupancy: 100%

Operating Expenses: $12k (although the owner does all maintenance himself which my mother certainly won't do.)

What other questions do I need to ask? When my mother walks the lot what should she be looking for? 

Thanks for your help.

[Andrew R. Lucas]

@Carter Bushman I have lots of questions and things she should be looking for.  

- If she is not managing the property then she should take the PM with her.

- Obviously, condition is a major factor in mobile home purchases.

- I recently purchased a 10 unit park and have learned Way too much about Septic tank issues.... They Stink!

- Certainly need to see all leases.  

- Don't simply trust the owner's word on financials.  Try to get some back up on expenses and most importantly the actual income.  I was surprised at how many tenants were on a "catch up" plan.

- however there is some upside here as the rents only average to $436 and she may able to move that up in the current Columbia market.

Feel free to direct message me or call me if you'd like to talk more about the property.