Mobile home park challenge- absentee owner

[John King]

Investment Info:

Mobile home buy & hold investment in Exeter.

Purchase price: $500,000
Cash invested: $100,000

95 pad , 45 occupied w/ metered water .public w/s ,paved roads w/older homes. Owners works full time. Looking for experienced park investor to fill the park, manage/enforce rules and improve collections.

What made you interested in investing in this type of deal?

Did apartments for years switched to parks for less turnovers , better cash flow.

How did you find this deal and how did you negotiate it?

Realtor i worked with on previous purchase found it. Did a 1031 from apartment building and was able to meets sellers long time frame as they subdivided from larger parcel.

How did you finance this deal?

Conventional with seller holding 10% second

How did you add value to the deal?

Engineering background helped with negotiation and valuation. Leaks were Significant drain on cash flow.No metered utilities - owners felt there were no leaks.

What was the outcome?

Fair sale price - needed to replace 50% of distribution system and booster pumps.

Lessons learned? Challenges?

Parks are a challenge as well as apartments. Different set of issues both require diligent oversight . Absentee owner does not work even if under management.