I inquired about a campground listing that has just had a price reduction from $449,000 to $424,000 (both of which are in the range for properties of this type). How much I could resell it for would depend on the market at that time of resale. The only expenses incurred by the owners is for insurance, garbage and snow removal ($3,360). The campers and mobiles have their own spetic, well and electric. GOI for 2005 was $22,050, total expenses $3,360 with a NOI of $18,690. The property taxes were $5,115, which includes the 4 bedroom, 2077 sq ft home as well as the campground. If you need additional information, please let me know. This property would also accommodate an additional 7-10 mobile homes.
If your numbers are correct and the NOI is $18,690 with a purchase price of $424,000, this is an HORRIBLE, HORRIBLE DEAL! The mortgage payment on $424,000 would be about $42,000 per year, resulting in a yearly LOSS of $23,310!!! I can’t afford many DEALS like this one.
Mike