I’m brand new to the CashFlowDepot community and super excited to be a part of it!
I’m in the middle of reading “Deals on Wheels” and have ear-marked a number of resources to continue my education.
I couldn’t stop myself from looking at different opportunities around me and don’t have enough skills yet to determine if this would be a good play, but the numbers, from a quick glance, look good to me (just bought my financial calculator…that’s another item I’ve earmarked to learn).
Here are the details:
10.5 commercial acres
11 park-owned units that are fully leased for $180/wk
1 lot available for development
3 of the units have their own septic, 8 units share a septic
Gross income: $100k
Op. Ex: $26,500
Asking Price: (price reduced) $575k
Initial strategy thoughts: as leases or units turnover, begin selling them with owner-financing but maintain the lot lease, and develop the 12th site.
Any thoughts on a deal /strategy like this? Again, forgive me for being so new! I’m working hard on my education, but it takes time! Obviously I wouldn’t pursue something like this without knowing more, but just trying to gather thoughts along the way to help me see opportunities more clearly.
I doubt that the expenses are only $26,500 with all those weekly rentals. Also, septic expenses will explode (no pun intended) when repairs need to be made. While those costly and smelly repairs are made, what happens to income? Will the tenants vacate?
If there are 3 units on one system and 8 on the other, are there code violations? What is the capacity of the septic system?
Weekly tenants throw EVERYTHING down the toilet. Ask me how I know!
Maybe you only buy part of it. Maybe lease/option some or all of it. It’s too soon to say.
We need more info in order to help.
Find out what the problem(s) is/are and let’s find solution.