Mobile Home Park financing

[Dustin Seager]

Looking for some financing ideas.

We came across an opportunity to purchase a mobile home park in Central Florida. The land comes with 4 mobile homes (2 of which have been split into duplexes), a quadplex of apts, and a couple extra lot rentals. In total, there are 13 units available to rent. 5 of the units are currently vacant. They are currently making about $6k per month on rent and several of those occupied units are rented under value, so the potential is about $12k a month in rent.

The owner is asking $699k. We have enough to put down 20%. Our lender said traditional financing is difficult on MHP, but if we go thru a hard money lender for the remaining, with the high rates we would break even every month at the current rental rate. We haven't seen the property in person yet, but expect the quadplex will need some work.  And eventually we would want to update the mobile homes as well, possibly add some tiny homes, etc.  

The seller has no interest in seller financing. Besides hard money, are there any other creative strategies we could use?

Thank you.

[Rick Pozos]

Go look at the property first. People always get me excited about so many units and they turn out to be 1960s mobiles that need a complete rehab, but they say they are getting 600 per month and that is well below market. The numbers look decent, but what is the actual condition of the properties.

If they are in good condition, talk to some friends who might have self directed IRAs or 401Ks that might want to lend you some money or invest with you(syndication).