All Forum Posts by: Jose Lira

Originally posted by @Jay Hinrichs:

Originally posted by @Jose Lira:

Originally posted by @Jay Hinrichs:

Originally posted by @Scott Schaar:

@Jose Lira at the moment you don't really have a park . What you have is a piece of raw ground that has four MHs on it . The guy selling has subdivided the land hoping that somebody wants to buy it for a subdivision for SFH . A MHP does not need subdivided lots . The entire property is owned by one entity and lots are leased in a MHP . If you're trying to develop a new park out of this . Your in an uphill battle . All the infrastructure that's needed would be three times the cost of the raw ground . Just to fill up half of that acreage . Roads electric, water and septics are expensive . I wouldn't value this anymore then a rundown quad in a C- neighborhood . The valuation you gave it is about right . If you were thinking about development. I would reach out to an experienced investor first. Just a thought .

 TWO thumbs up..  if i could figure out how to put imojis on here i would have had two thumbs up pictures.. this is nothing more than raw dirt.. and as such . not worth a fraction of the asking price.. the ONLY thing it has going for it is zoning if it will actually allow it to be built out as a MHP.. those zonings are getting tougher to find..  absorption  development cost etc. this probably does not work even if you got the dirt for free.

Hahahaha! I know!!! :D 

It has the zoning and in conversation with the county, they told me that this is a very rare situation. What happened is that the previous owners (who recently passed) for some reason applied for the MHP use permit on only 5 acres but the county somehow had the 27 acres zoned R-4 (although, as implied, development plans need to be submitted and approved). These happened during the early 80's. 

Now when making the current analysis to the land we found that: there is an area at the end of the property that is considered wetland, there is a storm pond in the middle of the property of about 1,000 sf and there is a little chance that the land may be house of an endangered species. 

If I am considering getting this property (the 2 parcels) for free or at a very low cost, say, 50 to 70K. Would it be worth the effort to divide the parcels, hold the MHP and tenants as they are on the 5 acres and resell the parcel with the 22 acres?

What do you think?  

At this point you need to engage a local civil engineering firm to do a due diligence report for you .. taking in all these considerations this would cost 3 to 10k.. and money well spent.. wetlands , If its state of WA is a huge deal.. zoning helps but does not give you a right.

you have to engineer all this.. and septic systems are huge in Western WA. and can be very expensive.. without city sewer and water.. I would think you are looking at doing more like Acre to 2 acre home sites and call it a day.

Great! thank you very much for your opinion! I can see now how these things enter into play. There is still a lot to learn and I'll do my next diligence to get closer to my decision.

As for now I really want to appreciate everyone for your help so far.

Best wishes to y'all!    

Originally posted by @Jay Hinrichs:

Originally posted by @Scott Schaar:

@Jose Lira at the moment you don't really have a park . What you have is a piece of raw ground that has four MHs on it . The guy selling has subdivided the land hoping that somebody wants to buy it for a subdivision for SFH . A MHP does not need subdivided lots . The entire property is owned by one entity and lots are leased in a MHP . If you're trying to develop a new park out of this . Your in an uphill battle . All the infrastructure that's needed would be three times the cost of the raw ground . Just to fill up half of that acreage . Roads electric, water and septics are expensive . I wouldn't value this anymore then a rundown quad in a C- neighborhood . The valuation you gave it is about right . If you were thinking about development. I would reach out to an experienced investor first. Just a thought .

 TWO thumbs up..  if i could figure out how to put imojis on here i would have had two thumbs up pictures.. this is nothing more than raw dirt.. and as such . not worth a fraction of the asking price.. the ONLY thing it has going for it is zoning if it will actually allow it to be built out as a MHP.. those zonings are getting tougher to find..  absorption  development cost etc. this probably does not work even if you got the dirt for free.

Hahahaha! I know!!! :D 

It has the zoning and in conversation with the county, they told me that this is a very rare situation. What happened is that the previous owners (who recently passed) for some reason applied for the MHP use permit on only 5 acres but the county somehow had the 27 acres zoned R-4 (although, as implied, development plans need to be submitted and approved). These happened during the early 80's. 

Now when making the current analysis to the land we found that: there is an area at the end of the property that is considered wetland, there is a storm pond in the middle of the property of about 1,000 sf and there is a little chance that the land may be house of an endangered species. 

If I am considering getting this property (the 2 parcels) for free or at a very low cost, say, 50 to 70K. Would it be worth the effort to divide the parcels, hold the MHP and tenants as they are on the 5 acres and resell the parcel with the 22 acres?

What do you think?  

Originally posted by @Joshua Diaz:

They are one of the largest owners of mobile home parks in the U.S.  

Fifth largest if I’m not mistaken 

 I'll look for them. Thanks!

Originally posted by @Jay Hinrichs:

you have bigger issues than just price.

if this is a west coast park IE CA WA OR  and its on private utls.. those are what you need a deep dive into.

how are you going to put 88 spaces in with private sewer.. you could spend 300 to 400k just on a new state of the art sewer system even if you could get it approved.

Plus absorption on that park .. ??? 

Also private water has to be monitored and your basically running a private water company lots of liablity there. 

so do check on those things before you get to far over your ski tips.  For me personally I would never buy a park on private Utls.. risk not worth it. 

Wow! thank you for that! Yes! Although I was considering growing the spaces gradually. The MHP only occupies 5 acres right now. I was thinking on putting money aside (as part of my expenses) and over the time build another small septic and well  that could hold say 3 MH's and keep growing it from there.

Didn't think about the private water company liability at all. I really appreciate you making this comment. This was an expense that I was not considering in my calculations.   

In your expertise, what other implications should I consider regarding private utls on west coast parks? 

That helps! Thanks @Joshua Diaz!

BTY, who are Frank Rolfe and Dave Reynolds?

Originally posted by @Thomas Gardner:

Sounds like you're on the right track & I'd ditto Scott above. Also are you really saying the 27 acres is subdivided? Or are we just looking at a county plan that will allow for 88 MH lots on it? Either way you're looking at a horrifying cost to get the infrastructure done. Your sellers valuation sounds more like a "Highest and best use" assessment than a realistic asking price. Unless you can carry this for some time with zero income and a huge capital outlay or have a developer in mind you cal flip this thing to and put a mini mall in there on the surface i'd say steer clear. Or a real low-ball offer that could make the place profitable with the lot rent only from the homes on it now. Sometimes the best deals are the ones you walk away from.

The parcel with 22 acres is zoned R4 allowing the subdivision for 88 lots. No subdivision and no county plan. The owner is selling as-is, and has no interest on make any inspections, studies, or put any money in the property to sell it. They are asking the buyer to pay any cost associated with the purchase. I am going with the low-ball offer here. A very low one.   

@Scott Schaar You are right, the seller is hoping to sell it for the subdivision.  

The situation with the property is that it has 2 parcels: 5 and 22 acres each. The 5 acres already have the use permit for MHP and are occupied by the duplex and 3 MHs. The other MH is on the 22 acres. And they are expecting to make profit from both the MHP and the subdivision. Hence the overprice. In my understanding, that won't work. It has to be sold either for the value to develop or the value of the park because: either one keeps it as-is and profit from the rents OR tears down everything and develop (SFH's).

 Thanks for your insight!

@Joshua Diaz I was wondering about the calculation that you proposed and wanted to know what is its base? Meaning, why dividing by .10 (the profit after all expenses for year)? And, are we talking about the profits after all losses, costs, expenses and debt service?

I appreciate very much your help!

Jose L

Hi everyone,

So, during my research to get a loan for a MHP that I am looking into, my bank and my insurance company recommended me to gift the MH's in this park to the current tenants and rent the spaces to them so that I save money on foreseeable problems (like repairs) since this property has been neglected for several years. I want to know if this is something that I should or shouldn't do.

The situations is that the MHP is located in a 27 acre space with the option to be subdivided in 88 lots but currently there are only 4 MH's and a single house divided in 2 units in this property. The 4 MH's are in poor shape and they are around 30 to 40 years old. The house is in good condition though and is about the same age. The county has an assessed value on these 4 MH's of about $25 for all of them.

Another situation is that the owner is asking for $650k and is using as comps properties with multi-families on them or mobile home parks with the same acreage. But I think that that number doesn't make sense at all since the MH's are worth nothing but just secure immediate pain, I'd need to demolish some other structures that are in the premises and develop the site since the septic and well is just supporting the current buildings. I've been running comps myself finding properties with the same acreage and a single home on it and got similar properties, very close to the area, in better conditions for just above $130k. Is this the right path of thinking? or what would be the right way to approach to the deal?  

Thank you Joshua. That was my first feeling. I made some numbers already and am preparing an offer already, but for funding the deal I’ll probably need a partner for this one. Where should I post this?