All Forum Posts by: John Kim

@Matt Boettinger I tried to message you but it won't let me. Private message me, I would love to discuss more about the property. Thanks.

The park has the following lot sizes: 80'x30' - 65'x40' - 73'x40'.

I'm looking at mobile home park in rural Ohio at $338,000 and interested any opinions/comments. What do you guys think?

Asking Price: $338,000

Town Pop: 16,297

Year Built: 1950

# of Lots: 36

Total Occupancy: 32

Avg MH Lot Rent: $150

# of POH: 0

Water: City

Sewer: City

Water Paid by: Tenant

Trash Paid by: Park Provided

Year Built: 1950

Size: 3.0 arces

The mobile home park is in a small town and all of the mobile homes are tenant owned are pretty old (1960's or so). The tenants are all long term residents. The trash comes out to be around $3500 a year. There's no amenities at the park though there is a laundromat next door. There's 3 abandon trailers in the park.

I talked to the agent and the owner has yet to provide any tax returns. The agent did lower the price to 700k and offered to sell to me for 650k. Its very suspicious the price is dropping so fast. MPH prices usually don't drop that fast, do they?

No, the agent hasn't gotten back to me yet.

I have asked the agent if the owner can provide tax returns. The expenses were pulled from their bank statement. I dont know for certain if they're all expenses since the statements don't show all details. Most of the expenses are from check issued (which I can'te tell who/what it was issued for).

The agent said they're increasing occupancy by advertising and cleaning up the park. They said that the current owner has never advertised or kept up the park. It may or maybe not work.

I guess I'll wait until I see the tax statements and investigate further. Thanks all.

@Jack Baczek

I don't know if they're bring back in/fill homes, will ask.

I assumed the infrastructure would be old/not best condition as the park is old. Didn't realize older parks might have smaller lots. The gas per month is ~$30 based on their statements, which I assume was from the laundry. I will ask if the homes use gas and if the park is paying for it. 

I will definitely get the Frank/Dave DD manual if I go into escrow. I'm trying to see any landmines before entering escrow. 

I'm currently looking a 39 lot only mobile home park in the west coast and looking for any advice/help on making a decision on it. The asking price is $850,000. From what I analyzed so far, it seems like a decent deal but I would like to see what you guys think. Here’s some details of it:

Number of MH Lots: 39

Built: 1930

Park Owned Home: 0

Structures on Park: 1 (Laundry+Office)

Water: City (Included in Rent)

Trash: City (Included in Rent)

Sewer: City (Included in Rent)

Total Occupancy: 24/39

Avg rent: $385 (based on current month)

Here’s some history of the MPH I found:

Here are the numbers based on the agent ($9525/month rental income as of today):

Total yearly rent (based on 24/39 lots rented): $114,300

Expenses (agent estimate): $30,000

Management fee: $19,200

The agent said the current owner never kept good accounting and has had some trouble managing the park. He did provide me with the current rent roll, 1 year bank statements, water/sewer/gas/tax bills.

Here are the numbers based on the bank statements for 1 year:

Total income: $82816

Total expenses: $75967

The park isn’t making much profit but if the occupancy stays at its current rate or increases, it seems like a good deal to me. Am I missing anything? The park price keeps dropping but nobody is biting, is there something I'm not seeing? Oh, the agent mentioned that they took over management of the park back in Aug and am actively increasing occupancy. He said he would like to continue as the property manager and their fees are 6%. He also said average rent can be increased to $450.