Is This A Deal
I have been thinking about investing in mobile home parks but I dont know exactly if it is a good idea or not. Here are the details of what I have been looking at.
Two parks, total of 38 sites with 8 vacant at $175 each. Purchase price 200,000 with 25% down ballon after 4 years(I dont like the idea of ballon payment). $63180 total income. After expenses for taxes and 5% maintenance 5% managerial and insurance, garbage disposal and utilities. Leaving a net annual income of $40,122. All the numbers seem good to me is there something I am missing. Any suggestions or advice is appreciated.
I assume you are coming up with 50K (25%) at closing. Based on that amount you should be able to get a conventional loan for a lot less cash. Also you may want to post this in the mobile home park forum for more responses. On the surface it looks like a good deal.
Good Luck,
Kyle
A lot of mobile home parks have vacant lots right now, it is very difficult for people to get financing for mobile homes to go into the parks.People have to have a higher credit score for ( there call it home only) then buying the home with the land together ( real property),.
Banks like the land home deals, and you can get FHA financing for them with zero down payment, with the home only you have to have at least 5% down, and a better score.
I own a mobile home park, and if you have any more questions feel free to contact me.
RK