Mobile Home Park Analysis

[Justin Robert]

What am I not asking / considering? This is one of those old  parks with lots of handwriting and little verification. I have the ability to pay cash, would most likely present both a cash and seller finance offer if due diligence proves out the opportunity. 

Purchase Price $260,000

10 acres (+/-) 

Not in city limits 

Midwest US 

22 total Spaces

11 Septic Tanks ( 1 per two spaces ) 

1 Water Meter (city supply) 

Individually metered electric 

Income - $5,200 Monthly 

8 POH @ $ 4,125 Total 

1 POH @ $ 400 (includes electric) Maintenance man works out his rent monthly on an hourly basis so not included in above $5,200 

5 Lot Rent @ $1,075 Total 

7 Unoccupied Lots

• 3 are move in ready
• 4 need electric pole / meter

Expenses $2,482 Monthly 

Water $400 per month average (park pays, does not pass on any costs but "watches the usage") 

Taxes - $187 per month 

Insurance - unknown ($200 per month in above calculation as estimate) 

Trash $225 per month average 

Electricity (night security lighting) $150 per month average 

Maintenance / mowing / cleanup, etc... $800 per month average 

Property Management - 10% per month ($520)

12.5% CAP Rate assuming I bring in PM and don't touch anything else.

My first thought for value add would be to get the empty spaces rented and  sell the POH on terms to the tenants

Thoughts? Questions?