Need Advice On 31 Unit Mh Park
I have the chance to buy a 31 unit park with 22 units rented. gross monthly rent is $5785 with 800 a month for maintenance taxes and insurance. owner terms; PRICE 190K with 10% down balance at 5% over 15 years baloon in 3 years. some of the 9 vacent trailers are very old, and need a lot of repair . I can do electric, plumbing, and a fair amount of remodling myself.
would it be best to fix up the 9 vacent trailer and rent as best i can or start trying to upgrade with some better trailers. what do you think of the overall deal. please advise thank you
Sounds like a good deal from the numbers posted here. Are all the MH's park owned? As far as replacing with newer, need to check with local ordinance about size restrictions and space required between units. Also, the maintenance with taxes and insurance seem extremely low. I pay more than that for insurance and it is liability only. If a tornado hits, I'm out a lot of $$$. My maintenance (22 unit, real old trailers) is about $1000.00 per month. Of course I outsource all my maintenance. Mortgage payment only about $1700.00 mo.?
I paid 265k for mine @5% 10yr with a 5 year balloon. I would ask for a 5 year balloon. With that kind of rate, get it for as long as possible. Negotiate for the best terms for yourself. Also make sure you have the water and gas lines inspected. That is a huge expense.
Good Luck,
Shawn(OH)
Up here in jersey, the parks dump the old trailers so they can bring in the new ones which they sell to the tenants, who continue renting the lot, but buy the trailer at a tidy markup
I bought a 61 unit mh park in a small city 18 months ago. My advice is to replace the older trailers with newer ones. We reconfigured our park down to 48 units to accommidate newer larger trailers. From what you have stated it sounds like a good deal.