Mobile Home Park Offer

[Mark Kvam]

Have a park under consideration:

38 pad, 15 owner occupied, Lot rents $140/mo, last increased $20 in 2012, 23 vacant lots, single wide only, no park owned homes, Southern IL. Asking price $110K, seller financing avail.  Current owner is running it from Alaska.  A sewer line was repaired in 2012 and trees removed. 40 year old community, homes 20-30 years old.

Population of town: 8000 (20,000 within 10 miles), median household income $29,000, median rent $616, median home $62,000.

2014 P/L

Rents: $23,144

Expenses:  $9132

mgt. 1889

maint: 1032

util.: 393

trash: 2890

Lawn: 1750

Ins.:  481

Licenses and misc:  696

Net: $ 14012 (40% expenses)

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Using: 15*140*12*.5/.15=$84,000 value ballpark  assuming 50% expences and 15% Cap.

Offer: $75k, 20% down ($15K), $60K balance seller financed at 5%, 10 yrs. ($636/mo)

I would like to increase lot rent by $20/mo but have to find comps for the area to compare to.  I am at a distance (900miles) from the park.  I would plan on moving in 1 to 2 homes per year.  This would be my first park.

Any feedback would be appreciated. Mark