All Forum Posts by: Travis C.

Here are the vitals:

48 lots

31 occupied with a trailer on them, Average lot rent is $200

13 trailers are owned by the park with 2 of them needing work(8-9 of these are currently rented out) The total rent is $550 on these so basically and additional $350 over lot rent

3 trailers are owned by me (two are rented out and 1 we just bought is being updated/fixed up and should be ready next month) Average is $500/month but I am paying the $200 lot rent on them.

Park also has a 5 spot RV park as well as they use empty lots for RV occasionally

There are two buildings included, one is a medium sized pole barn rented out for $150/month and the other is a 3 stall storage unit that brings $300/month

This is in a smaller rural town, lower income housing is always very high demand in the town(population around 2500).  The owner has owned it for around 30 years and is looking to get out and has approached me about purchasing it.  The majority of the trailers are older but the ones owned by the park have all been updated with new roofs, water heaters, entryways, plumbing in the last 5 years.  Water, sewer,garbage is included in the lot rents.

What do you think the seller should be asking for a selling price?

Thanks for any input.

I have never taken a loan out on any rentals I have purchased(I own 4 rental houses) but recently was approached about buying a multiple unit property.  I inquired at one of the banks I have accounts at but never had a loan through if they would be interested in looking at the loan. The loan would be in the neighborhood of $400-600K.  They came back with these terms:

20% down

5 year term with balloon payment

20 year amortization

Is that pretty standard for a commercial loan of this type?  I was hoping for a 15yr fixed.

I have very good credit and have had large loans that have always been paid off, I am a farmer mostly so I have large machinery loans, operation loans, etc.  Any help to my question above?