Hey everyone, hope I covered the majority of my situation up front...
Have an opportunity to purchase a mobile home park in WV that isnt too rural. It has city water and sewer and tenants pay for own electric and cut own grass. Currently the lot rent averages aprx $165 lot x 14 lots = $2,310/mo x 12 months = $27,720 year gross income.
Expense are quite low: $2000 year taxes, $600 insurance, $700 street lights, $3000 vacancy/lost rent, $1000 upgrading UTL & gravel/pavement per year = $7,300/year expenses. If i can keep the vacancies down it will be even better.
The good: rents are kind of low even for that market. Most charge around $200 for a much smaller lot. This park layout has all mobile home side by side vs all around you so there is more room. So then it would gross around $33,600 year. I might be able to increase rents to $225 even but that might be a big jump to put in play in the first year?
The bad: the park is about 45 years old and most of the utilities are from that era. Its never going to be in a booming town, but there are quite alot of MHs in WV. It has older mobile homes low 80s to low 90s. A few old tenants which isn't bad but has some lower quality tenants with ugly ran down homes/trash. Real estate in WV is different than most markets. There inst much if any appreciation and only in very certain areas so cap rates are hard to solidify a purchase. Cap rates can be all over the board and there are basically no comps on MLS to justify what to spend. I will probably buy mobile homes and bring them in to rent them out as i go (i know most people dont believe in this but in WV you can get $675 for a clean 3BR mobile home that you would have an all in cost of under $14k for the MH/moving/etc.)
Im curious as to what you would pay for something like this? Older park, good rental history with no vacancies hardly, and its in an area to where there would be little interest from other buyers. Potential to increase rents and move in newer homes to rent out.
