College student wanting to buy mobile home park

 Hi guys, I hope that this post finds all of you doing well.  I have been familiar with real estate for a few years now.  I even managed to make $5,000 on a referral fee about a year ago.  I found what I think to a be good deal down the road from my college.  It is a mobile home park with 10 mobiles on it.  9 single wides and 1 doublewide.  It brings in $3430/month and what I really like about it is that there is a lady living there who runs the place for free rent.  She screens all clients and keeps the noise down and takes charge.  There is little expenses and they pay their own water bills.  Being a college student, I have no credit and no money.  However, I know there are ways around this and I am willing to find out how.  I know it is getting harder to refinance now, I was thinking about doing that after a HML.  Do you guys have any advice for me?  I'm ready to get into the game.

No money and no credit is a problem.

It would tough to even secure a HML like that, don’t believe all the hype you read; its just somebody trying to sell something. You might be able to secure a private or HML if you really sold the deal and knew what you were talking about, but I don’t think you would be able to get it refinanced without a cosigner after.

You need to establish credit even if it’s with a very small amount of money, go get a credit card with a small limit.

I just checked my credit at and it says that my credit score is 761.  I didn't even know I had a score.  Something seems a little weird about it.  I have out some student loans and stuff, maybe that did something.

Actually allot of young people who are diligent with bill payments have scores around there, your already on your way.

Now that you do have credit that’s a big step, I have to believe almost no one would touch you if you had absolutely no credit history, unless you were filthy rich. Give us the rough numbers for the deal-

After Repair Value-
Purchase Price-
Monthly Income-

After repair value - unknown

Asking Price - 220k

Repairs - none

Other expenses - 15/month for water, and 79/month for something else

Monthly income - $3,430

A HML is going to lend on equity, its important to know how much the deal could potential be worth. That’s the first step, even if it’s just a rough idea. Best case scenario you will get 75% ARV, to get $220,000 you would need to have the ARV at about $315,000.

Thanks for helping me. I really appreciate you taking your time to help me with this. I was wondering, what would be the best way to find how much this property is worth? Is there a formula to do it using the income generated by the property?

Any HML is going to require an appraisal, which will usually cost around $300. That would be the absolute easiest way.

Comparative Sales (Comps) are the quickest and most reliable. It’s taking different properties in the same location with roughly the same size and seeing what they sold for.

I’ve never invested in a Mobile Home Park so I’m not quite sure how you would get a good idea. If there are other parks close by check tax records to see what they sold for etc.

What kind of a deal are you getting here; you don’t seem to be too sure. You don’t want to and can’t buy the property unless it at wholesale prices. Your first clue is why the owner is selling.