I have read some really great Mobile Home Park deal analysis posts. However being new to the space (I have previously only flipped SFH), I would really appreciate opinions with experience on the specific deal detailed below.
Summary:
Asking price: $449,000; Annual Income $47,880 (95% occ.); Annual Expenses $13,282 (approx.); NOI: $34,598; Cap Rate 9.38
Details:
Income:
24 units at 100% occupancy (two units are wrapping up lease options) at $175 lot rent for monthly income of $4,200 or $50,400 annually.
24 water meters are purchased and included. Supposedly the park is on the schedule to get city water to the meters. Currently on wells and professionally managed for largest expense. This would require due diligence as it would greatly improve NOI.
Annual expenses: Taxes $2,741; Water $4,600; Septic $3,000 (5 septic systems); Electric $900; Extra Water Test $500 ($1500 every 3 years); Insurance $541, and I added an extra misc. of $1,000. Total: $13,282
Thank you for considering responding and helping my education (and analysis paralysis).
Rebecca
