All Forum Posts by: John Beck

How much is the roughly 1.25+- acres worth? You may be able to buy the land, and make a profit. 

$2500 + approx $4000 personal loan. If you can rent it for $575/month, and depending on your loan, loan costs and term of loan (and cost to make it inhabitable). If you can keep the rehab costs down, it could work.

In Single Family home rentals, many of us try to do a quick estimation. You want to be able to rent for at least 1% (or more) monthly of the total purchase price. If the home meets that qualification, then I usually run the true numbers through the rental property calculator to get a closer idea of the real cost and benefits.

Using this method if I was interested in a house that cost $52K, it'd have to be rentable at $520/month. If it meets that requirement, then off I go to the Rental property calculator.

This is all theory, so please factor in your own actual costs. This information is very general and may lead to failure.

How much could you rent it for in your area? Do you have the means to purchase it?

This may help, or at least give you a place to start

I think I'd come in real close to what @Ryan Groene mentioned, right around $130K. If you can get it under that price, then even better. 

As part of your due diligence, make sure to get those sewer lines "scoped" do you can figure out how they look and what they are made of. That could be a nightmare if they are 45 years old.

Have you seen the rent rolls and payment history? Might help you figure out how much struggle there will be to get everyone paying on time and as expected.

Park license costs and trash pickup are also likely expenses. I know you mentioned that the tenants pay water and sewer, does this also indicate that these services are provided by local/city utilities?

I am in contract  to purchase an MHP (on public utilities). They are currently getting all the water they want, for free as part of their lot rent.

If we submeter, depending on what's written into the current lease, we may have to wait until renewal time, to start billing them directly for water and sewer?

Has anyone else already dealt with this scenario?

Thanks for all the great ideas and responses. @Ryan Murdock, thank you for the example letter also.

Background: This is for a small 14 unit MHP.

Is there a tried and true method to ensure that the current clients know who to send their rent to, after the the new owner of a MHP takes possession?

I tried to search the forums, but didn't come across anything relevant, so please pardon me, if I missed it.

Congrats. I know a couple of newbies, who are in this same boat!

@Ryan Groene

 I live 9-10 hours from this location, so yes I'd need an onsite property manager. That is one of the things I am trying to figure out also.

I would likely visit the site monthly. I do have family 30-40 mins from this property, so it'd give me a reason to visit them more also.