Trailer Park Investment Property Financing

[Patrick Kelly]

Using the template within this forum so details below...

Your goals and story: Purchased a SFH for rental in Indiana earlier this year and am focusing on this state (IN) for additional doors. New to REI but aggressively seeking to replace job income with passive income from rentals. I live in TN and acquired the first property through Roofstock and this latest deal found on Loopnet. How long does one need to own before taking advantage of the BRRR method to spin funds back out of a property?

Type of property: Mobile home park with 9 of 11 homes that are park owned and 2 tenant owned units just on land rent.

Location of property: Fulton Co, IN.

Purpose of financing: purchase

Type of financing sought: first looked/ing for traditional loan/mortgage but not having luck. Because it's 9 doors (11 rents) I assume this would be a commercial loan. Looking for suggestions. 

Current or prior ownership of real estate: Currently own 1 rental house in Portage,IN and have only my DP in equity, 25% but comps in the area show property worth another 10K (+ the 25K down)

Occupancy: 2 homes pay land lease, 4 long term renters and 5 other homes leased with an avg 90% occupancy.

Value of property at present and/or your offer price: $175K list and seller is willing to leave 12K in escrow return to buyer after purchase. Have not assessed value or issued an offer yet.

After repair value: $ ??

Anticipated or actual appraisal issues: I'd like to get appraised on a unit by unit basis but will I need to have property appraised a second time when financing is underway? Should I just look to get this report and adjust offer after this is returned?

Current rents per month: for whole park ~4K

Fair market rents per month: I'd guess just at > $500/unit and offload the utility costs on the renters, current paid by park owner

Down payment or equity: Expect I could come up with 30% down if needed

Source of down payment funds, if applicable: own funds and borrowing from/against IRA/brokerage acct

Income Source: Salaried in telecom construction management for ~20yrs

Gross monthly income (optional): $5K/mo

Monthly debt obligations appearing on credit report, plus (if applicable) personal rent and alimony/child support/etc: $3K

FICO: Excellent 800

Credit issues: just mortgaged a rental property in Feb and cannot yet show rental income history to offset costs. This would make monthly obligations appear to be ~$3700

Additional details:

Located a property management resource locally, park has an onsite maintenance/groundskeeper. Have not yet created the LLC in which I intend to purchase the property in.