Looking for comments/suggestions on a Mobile Home Park deal

[Geoffrey Lessel]

I have found a deal here in Central Arkansas on a mobile home park that I would love to get comments and/or suggestions on. I have a private money lender who is interested in the deal with me but I've never bought a MH park before. Here are some details:

* Inside city limits (you can't create any more parks in city limits by law)
* 29 pads (no park-owned homes)
* Pads rent for $150/month or $190/month (depending on whether the homeowner has dog(s)
* Currently 11 pads are rented (8 w/o dogs, 3 with)
* Selling for $150k
* Owner owes $100k and is willing to finance $100k with down payment of $50k. I don't know any other terms than that at the moment.

What questions should I be asking the seller? What should I be looking for? Is this a deal that seems good? It certainly looks fantastic to me by numbers, but again, I'm new to MH investing.

Any comments or suggestions would be much appreciated.
Thanks!
-geoffrey

[Just Don]

since it is inside city limits it better have existing city water and sewer. Who pays that?Hopefully individually metered to tenants. How about other expenses, street, street lights, etc. There are probably many more expenses than meet the eye.

It is going to be expensive to fill this park since the easiest and best way is to buy homes(hopefully at a huge discount) that need moved elsewhere and move them to your park and resell them to good tenants.

'here' they started a new rule if the mobile owner doesnt pay the personal property tax as due,,the court owner has to before it is moved or torn down. HUGE expense and liabilty exposure as several years taxes can easy be thousands or tens of thousands of dollars. This comes to play when house gets worn out or tenant disappears in the night. Which happens more often than you think.

Check on other licensing requirements also by city or state or both. Around here they LOVE to close whole parks for any little excuse. One was closed because something electrical was located too close to natural gas equipment.

Never heard of charging 40 bucks for having a dog,,,thats a new one on me,,,but sounds like a good idea,,,does that include inside dogs??

Due diligence and keep your eyes wide open,,,good luck