Small Mobile Home Park Analysis (seems to good to be true)

[Account Closed]

I am newbie looking at jumping into my first park.  I have been scouring the web and found one that seems to good to be true.

- 17 lots ($200 per lot)

- 100% occupancy

- 0 seller owned homes

- tenants pay city sewer/water/metered electric

- Annual taxes = $1300

- Owner asking $265k

It seems like I would only have to pay for trash and lawn care.  I spoke with he owner and he stated that many of the units are owned by the same individual and rented out to tenants.  I am worried that this person my have too much power in the area.  Does this deal seem to good to be true or am I missing something?

Thoughts?

[Curt Smith]

I'm not going to analyze your deal but help you this way:  there's a mobile home and park forum dedicated JUST to park analysis.  Repost there.

Better:  read back a few months over that past deal analysis.

Biggest mistake new folks do:  is cap rate home rent.  Bank appraisers will only cap rate lot rent.  Typically this will cut the asking price in half.   Do some study in the other forum first.  Go read before asking what "cap rating home rent" means.