All Forum Posts by: JC K.

The question is why develop a park when you can buy a functioning one for less $ per lot and with positive cash flow?

What is the return on cash?  I would pay more attention to this than to cap rates. I also look for upside (raising rents, adding homes, cutting expenses). It looks like adding homes may be where there may be some potential, but that also consumes cash.  Expenses are already fairly low, but they should be if the seller is managing. Will you be managing?

Repairs and maintenance look too low. 

Thanks @Rachel H.  The Seller is now looking into evicting this tenant.  The Park Rules don't address this particular situation.  I don't know exactly how he'll make this happen.  This tenant is on a month to month lease, so maybe there is hope.  

This is a small park with significant upside, but as of now, the NOI is pretty tight. Among other things, my offer is contingent on not losing tenants during the DD period. Not sure how I'll proceed with this situation.

Has anyone here come across a situation where you learn a registered sex offender owns a MH in a small park you had under contract?  What now?  

Guess it is time to add a "check for registered sex offenders" to the ever growing dd list.  

I'd consider asking for a percentage of NOI. The more money you make for the owners the more money you make. If you can raise rents you both win. If you cut costs you both win. If you reduce vacancies you both win. In this capacity you'd be responsible for everything and delegate whatever you feel comfortable to an onsite manager. One consideration is this may not work if you make short-term based decisions (i.e. raise rents above market, neglect maintenance).