All Forum Posts by: John Sheedy

Park Brokerage Inc. is proud to welcome to the market White Cliffs Mobile Home Park, a clean 70 space 2* MHP on city services with seller financing. Sale includes 24 mobile homes in good shape and the park has been well maintained with new underground infrastructure and amenities such as gated security. Owner has put in some new singlewide homes and the park is laid out with four cul-de-sac’s and gravel roads. Electric and gas are direct-billed to each tenant and water/sewer is passed through to tenants. Owner has an agreement with local water provider which has an easement on the property for treatment plant that services the park and the immediate area and also allows landlord water shutoff rights for non-payment of rent. Parks rents are under the market allowing landlord immediate upside. 

PLEASE DO NOT DISTURB TENANTS OR MANAGEMENT

-$1,400,000 sales price

-70 sites with room for expansion

-8.6% cap rate, 16.8% Year 1 Total Return

-Sale includes 24 park owned homes

-No rent control

-Large lots and newer inventory

-Security Gate being installed on property

-Connected to City Water & Sewer service

-Great return on current numbers plus rent upside

Address:

40 Bishop Dr

Gallup, NM 87301

Please email [email protected] for rent roll and financials.

-Lassen Mobile Home Park

-$950,000 with $250k down at 5.5%

-704 Bangham Dr, Susanville, CA

-30 Total Sites including 2 Homes plus additional acreage

-Fixed interest seller financing available, no park-owned homes

-14.5% total Year 1 return, 7.9% cap rate

-No rent control

-Fenced yards, paved roads, large sites

-Rental and infill upside

-Direct-billed electricity for most sites

-Stable tenancy, historically low vacancy market

-Great return on current numbers plus upside

Licensed general contractor, broker, and investor here. Admittedly enjoy them in the reverse order.

Out here in Phoenix it is pretty standard and from what I gather it is due to many GC's folding and their subs not getting paid during the bad years. Since then subs have been much more demanding of a deposit. I personally don't mind paying it as long as it's someone trusted and the percentage is below 25%. Would never give it to a stranger though.

No contractors licenses in Texas right? I imagine that can be pretty crazy.

I don't think asking for a small up front deposit is anything too much to ask but not more than 25%. Thing is I have heard just as many horror stories of GC's not paying up (or paying very slowly) as I have subs not doing what they have promised so there's room for blame on either side.

@Kim H.

It all depends on what you're rehabbing as well. You won't need a GC if you only have a few trades being done. Then again I've seen some subs come in higher price-wise than some generals. Get a few quotes and you should be fine, that's the biggest mistake that some make.

You definitely can't make a profit off a utility from what I understand. Even in Texas a landlord can't even pass through service fees to a tenant.

David you can definitely do RUBS and get back a chunk of those water and trash costs. It's allowed in Texas. Water prices are only going to keep rising (faster than rents generally) and with the service being included in rent your residents aren't going to have much of an incentive to conserve. Even if you only allocate out 50% of your total water costs (which would be billing each unit an average of only $25/month although this would go down over time) you're going to bump up your cap rate a whole point and put almost an extra 10k a year in your pocket. And that's without mentioning how you can also allocate trash costs should you desire.

RUBS is a method of allocating utility costs to residents. But for gas not every area is allowed. Where is the building located?

Depending where the property is located you might be able to do RUBS.