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Updated over 8 years ago, 08/17/2016
Mobile Home Park Deal Analysis
Hello,
I've come across a 3 acre mobile home park for sale, and can use help with the analysis:
Current Asking Price: $145,000 for a piece of land with 35 hookups. There are currently 20 spots filled at $150/month. (20 spots @ $150/month X 12 months = $36,000 income)
Assuming 30% down at this price: $43,500
Mortgage of $101,500 @ 4% for 20 years = $615/month or $7,380/year.
Taxes/Insurance (assuming 0.5% tax) ~$2,000 year.
$36,000 income - $9,380 tax/mortgage/insurance = $26,620.
~61% cash on cash return.
I know this does not include fees for collecting rent/marketing the property, but what am I missing here? This deal seems too good to be true. Can use some advice.