Mini Mobile Home Park/Lot

[Tyler Lance]

Good morning,

So I live in the St. Charles, MO area and I've

been looking for more properties to invest in around me. The good thing

is, it's a highly desired area right next to a lot of entertainment,

shopping, and there's a university right here. That being said, housing

prices are high, and rental units fill up quickly. Additionally, the

area I'm in is the historic area. So most of the home are 100 years old

give or take a few. There really aren't a lot of options that are

reasonably priced for investors just floating around out there. However,

I came across a plot right on the corner that has a 2b/1b home about

900-1000sqft(owner wasn't sure), 3 trailer plots that already have

trailers on them, the renters just pay to rent the lot for $250/piece

and they cover all their own amenities, and two more vacant lots that

are set up with water, gas, and electric.

So, when I spoke

with the woman she said they are just ready to get rid of it because

it's her dad's and he's sick(why she didn't know the specs on the house)

and said they want to get $180k for the whole lot.

To recap,

she told me the renters in the house have been there well over ten years

and they only pay $550/month(too low for this area), $250/month/lot for

the trailers. Asking $180k.

I'd really like to get this

property but after running the numbers, I'd like to offer them closer to

$160k because that's the only way I see it working, the rent will have

to increase for the home, and I don't know much about mobile homes so

I'm not sure if that amount to rent the lot is fair or not. Going to do

some more research but just wanted to see if anyone else thought this

might be too good to be true or if they had any other factors to throw

in that I might not be thinking about, sort of a different type of

situation. I should mention, it's technically the city and seeing

trailers here and there on different lots is not uncommon. That's why

this area is hard for comps, you can have a trailer, a home worth $170k,

then a home worth $380k all on the same street.


Thanks in advance!