Real Estate Deal Analysis & Advice
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal



Real Estate Classifieds
Reviews & Feedback
Updated almost 10 years ago on . Most recent reply

Dumpy Mobile Home Park
Came across a dumpy little mobile home park today for sale for $47k.
6 lots 5 with homes and one empty. All park owned homes. All on city water and sewer.
#1 Rented for 400. #2 rented for 350 #3 Undergoing renovation and not rented. #4 empty, no home #5 rented 350 and #6 rented 400.
What do you all think the likely hood is of getting the tenants to convert to a rent to own situation? I was thinking of a lot rent around $150 should be doable.
So 150*4(rented lots*)*12*.7(30% expense reserve)*10=50,400. Seems like a good price on the park. At a 10 cap I would be getting free homes. Now understand that these are not nice 2015 model homes but fairly old single-wides but free is free right.
Thoughts?
Most Popular Reply

Tim -
Stop! Get yourself educated. Get to Frank & Dave's Bootcamp. Don't do any deal until you get smart about this complicated space. The diligence process must be done correctly - water pipes, sewer pipes, home inspections, competitive research, research on any violations, running test ads, researching the economy, etc., etc. Small deals like this DO NOT trade at a 10% cap rate. More like 15%. And I'm not even sure it's worth that depending on the condition of the homes and what market it is in.