11 mobile home deal analysis

[Aaron Maynard]

Can someone help me decide if this deal is worth going forward with? I have 7 mobile homes rented and have about 2 years experience as a landlord.

11 older mobile homes ranging from late 70’s to mid 90’s models.

All rented through section 8. 

Grosses just over $4000/month

The owner wants $155000 for the park

The bank will loan me $88000 for 15 years at 5.5%

I will put down $30,000 cash an the other 37,000 will be leans against two of my mobile homes and the land they are on.

Should I do the deal? Thanks!

[Bryan Mitchell]

After an inspection, you could determine if there is any differed maintenance. That would to know. Also, what fixed expenses do you have? Back this off of the gross rents, what is is your net (not including debt service)? On the surface this looks like a good deal. Any value add here? Any empty lots you could rent out?