All Forum Posts by: Johnny Manziel

Well wish me luck I’m taking all of this in consideration for sure.

Any other opinions?

I guess what I’m trying to get at most every park you see has utilities that the owner is responsible for and those parks fall under the age of this one. Therefore it falls in with the masses so to say it’s worth 50k sounds off. That would mean most parks would have this value as well. I get worried when someone says 50k lol that is assuming a 50k-80k utility overhaul.

As far as leaks and I’m unaware of anything like that but I will address that for sure I want to thank you for bringing that up. I do agree the price needs to reflect that upgrades on each lot will need to occur.

Trash is paid for by the tenants and it’s 18$ a month. Snow removal is free. I will park manage. Grass cutting is done by tenants. 

Wow that is a lot for 24 lots much be in the right spot!

Again thank you for the feedback 

Hey @Bill F. & @Jay Hinrichs thank you for the responses! Great info/points.

I would own the lines from the water meter to the MH, Electric from the meter down to the MH, and the sewer lines that are on the property. Would you agree that a majority of mobile home parks 30-60 years old? And most are set up in the same position mine would as far as utilities?

Also 4 of the 14 lots have utilities that are from the year 2000 from a small expansion, I left that part out!

Okay two people say 130K is a decent buy number. My only concern is it wont cash flow much at all buying it for around that price. Id have to raise rents to really see any cash flow and then its still minimal. That is why i want to bring in park owned homes that im buying for cheap that get high ROIs. Good call on the sewer lines. I haven't seen anything in writing just yet on income/expenses.

@John Fedro

The tenants are responsible for trash removal (required to have trash cans). 

Im not sure of a park license or a cost of that. I've actually never heard of that ever....

Yes, its all local/city UTLs. NO septic tanks!

@John Beck

@Ryan Groene

Feel free to chime in on what you would consider a good deal for you to purchase it. 

thank you the the response! tenants pay for water/sewer/electric. I just don’t see more expenses then I listed but as we know crazy things happen in this business lol. I would be self managing the park as well hoping to cash flow a decent amount while it pays for itself. 

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.

Your PMI will be 3x that number with an FHA loan. I dont see any insurance for the 4-plex that will be around $125/month depending your area. Also, current rates for FHA 30 year are 4.375%. I see you are doing a 27 year though...

Are those figures with you living there or not? $600/month rent or $800/month?