Mobile Home Park Analysis

[Timothy Jacob Wallace]

I've run this opportunity by some people I know, but I want more feedback.  I'm in the final stages of a  flip (contract on the property, closing in the next 4 weeks) and I'll be putting money into a new investment.

I have the opportunity to purchase a MHP that is not on the market. It is in a rural area, no real industry in the town, but within 20 miles of an area with several job opportunities, a lot of farm hand work is available as well. It is a 33 lot park, it currently has 10 lot owned trailers, 2 on lot rent, and 1 trailer that is bank owned (bank has it for sale), with 20 vacant pads. Current gross revenue is $4,925.00, property tax is $800/year, tenants are responsible for all utilities (on city sewer and water), tenants are also responsible for yard maintenance (they can pay $10 to have their yard maintained if they don't want to do it), owner is responsible for upkeep on empty lots, 3 are on HUD payments.

I own other property in the area (not rentals, recreational) and I have good contacts for maintenance and upkeep, I also have someone I trust to manage the property (I live 10 hours away, but I spend roughly 60 days a year in this area).  The lot is in a 'good' area of the town, it is easy walking distance to schools, dollar general, grocery store, gas stations, and county offices.  It is not in a flood zone.

Initial plan (could always change) is to keep the park owned homes, purchase new mobile homes as good deals present themselves, place them in park, offer a lease to own option to new tenants, transition to lot rent once the mobile home ownership transfers to the tenant.

I believe I can get this property for at least $235k, likely a little lower.  I have a few banks in the area I can acquire financing through, and I plan on putting at least 20% down and keeping at least $10,000 in an account for any repairs on park owned properties that might happen early (all trailers have had substantial work in the last 3 years, all in average - good condition)

Does anyone have anything they would recommend I look into?