All Forum Posts by: Jesse Womack

 Hey Tony, thanks for your quick response!  As the owners we would provide trash removal, all repairs and maintenance to the homes since they are park owned, care for all of the landscaping, grass cutting, tree trimming, etc.  The water is city water which the park owners pay (cost is included in rent).  Sewer is septic system.  All homes are metered for electric separately.  Lot rents average $300 and actual park home rents average about $650 - $700.  This park is significantly under that current park owned rental rate because the homes are older.  So I believe there is a lot of upside there if any income is put back into the park to bring it up to date.  currently about 1/3 of the tenants are long term.   

 Thanks for your response!  To answer your questions, the cabins rent for $400 per month and the homes rents for $650 per month.  I don't believe the cabins or homes could be separated from the park but their total replacement value would be close to $250,000 total.  Lot only rates run around $300.  The goal would be to hit other mobile home parks in the area looking for owners who are trying to sell their homes.  This is where we are at a bit of a loss.  Is there an average known cost for a used mobile home including the moving costs?  Water is city water but the sewer is septic system.  All homes are metered for their own electric. 

 What type of financing is typical for mobile home parks?  Do banks offer financing for this type of deal or would you suggest another route?

Hey everyone, I'm new to the site and appreciate any responses and feedback.  I've been doing fix and flips, single-family and multi-family rentals with my two partners for a few years now but we are looking to get into the mobile home park arena.  We recently came across a deal but since we are new to this aspect of real estate, I was hoping to get some outside opinions on whether you all think this would be a good deal. 

A little background:

The park is 14 acres, sits 5 minutes from both a popular lake destination and a popular fishing river.  it has 45 pads on it, all of which have outdated mobile homes that are park owned but need to be replaced.  in addition it has 2 small cabins and 2 single family homes on the premises.  half the roads are paved, the other half are packed gravel and it has a large shop on the premises.  The overall park is definitely a little run down but has potential to have new life injected into it.

The financials: (these have been verified with backup documentation from the broker)

Asking price: $800,000

Annual Rental Income: $181,500

Annual Expenses: $58,225

NOI: $123,500

Cap Rate: 15.43%

From what I can tell (depending on financing) that would provide a good initial cash flow, and if you were to put that cash flow back into the park to bring it up to date with newer trailers, etc... you could charge higher rents and increase your cash flow even more. 

Based on this, what are your thoughts on this as a mobile home park investment?  If you need more information for a better evaluation just ask and I can provide it.  Thanks for all your help on my first post here at bigger pockets!