There is a mobile home park for sale I am trying to figure out how to buy…
Asking Price: $360,000
Probable Purchase Price: $325,000
Makes $3463/mo, NOI: $41555
(Taxes+Insurance: $1500, Landscape $800, Plumbing $1600, Water $9385, Electric $1k, Garbage $2879, Environmental Dept $230, Septic Service $2156)
Cash Flow: $22,005
20 units on 2.25 acres
4 lots vacant, 16 trailers, two of those are park owned.
Lot rents are $250-$275 a lot with no rent increases in the last 5 years
Two park owned trailers rent for $450
The first route I am going to try to take is to get a loan, I will try SBA and bank. Any suggestions there?
I am not hopeful, I am a real estate agent and have only been doing that for 9 months, before that I waitressed. I have pretty good credit though, about 720.
I can probably scrounge up $10k down. With that much down at 5% on $325k my payments are estimated at $3122 for a 15 year. I’d be in the positive just 300 or so a month but I would be building my future and there is plenty of room for improvement!
The potential for the park is another $20k a year by increasing rents to $285-300 and putting trailers in the four empty lots. As an agent, I come across trailers people just want to give away and get hauled off for free all the time. My boyfriend is a contractor and has big trucks and we could team up on it.
The sellers offer owner financing, but the listing agent said several offers with about $50k down were rejected and he doesn’t think the sellers will owner finance with anything less than $100k down
What are the options for buying this? How can you buy an income producing property?