All Forum Posts by: Mark Brown

OK - I found about a pocket listing a few weeks ago.  Here are some of the details. 

26 total spaces, 11 occupied with park-owned homes, the remaining 15 are vacant.  However, 10 of the vacant spaces are newly outfitted (electrical and water hookups, and septic tanks with all plumbing laied).  Park is located about 10 miles from a city of about 180,000.  Close to major highway.  Lot rent is $175 per space, and the 11 homes are rented at $300/space.  This guy is asking $475K, which seems really hight to me.  I have the 11 occupied spots at a value of $115,500 (using the lot rent and a 60 multiplier).  Can any of you help me determine a good value to assign to the park owned homes and vacant lots ready for occupancy?  I'm thinking $10k/home (depending on the age/condition), but have no idea what to assign to the vacant lots.  Right now, I'm coming up with about $270k value for this park.... What the heck am I missing?

Thanks,

Mark

Thanks guys.  Went and looked at the park this past weekend..... It's in pretty rough shape.  Some of the homes appear to be falling apart.  Kind of remote access (although the town is so small, that's not a huge issue).  However, it turns out that the park is only 7 lots, 4 of which are rented..  The deal is not looking nearly as appealing to me at this point.  I think I'm going to continue my search. 

Thanks for the info guys.  I'll look in to buying the 30 day due dilligence kit.

I'm a new investor myself, but from everything I've learned, mobile homes are going to rent for significantly lower than SFH. Most MH renters only have about $500 or so to spend on housing (and this includes the lot rent as well). If it were me, I'd look for parks over homes to put that $90K in.

I've taken some points from various sources and attempted to generate a decent purchase contract on my own for my first MHP deal. I have several "outs" built in, including a 30 day due diligence period, and how the offer is contingent upon me obtaining financing at terms acceptable to me...However, I'm worried that there is some clause that's being left out. Does anyone know of a good source for a purchase contract template without having to pay an attorney to draw one up? If the only option is an attorney, does anyone know the going rate for this? Many thanks.

Thanks guys - it's pad only but that's a very good point. Thanks for the replies!

New to BP and am looking to make my first MHP deal happen in the near future. I have a couple of potential parks I'm looking at and I know everything I've read talks about the benefits of managers.... However, if the park is within an hour or so of my house, what are the risks in trying to manage myself? I have a full time job and am trying to determine whether it's a terrible idea to try to manage myself. Any advice would be helpful. Thanks - Mark