Potential Real estate deal - comments appreciated

[spex x]

[ QUOTE ]

I have zero experience with mobile home parks and motels. What kind of a motel is this? A month long motel rental? I don't really see any of these in my area.

[/ QUOTE ]

Its basically an older mom & pop type of operation. Basically just a little roadside motel. The seller has been renting it out for $155 per week or $550 per month. The rooms are all kitchenettes. The road its on is high traffic, but like I said, in a bad area of town. It was probably originally intended to cater more to nightly guests, but the deterioration of the area likely forced it into a more extended stay situation. Not really sure though.

[ QUOTE ]

How would you proceed to run the mobile home park area? Trash the homes, and then advertise to lease the land to people who own mobile homes?

[/ QUOTE ]

I would salvage what homes I could and sell them. Whatever homes I trash will have to be replaced, and I'll have to foot the bill for bringing in new homes. These days nobody that is willing to live in a mobile home has the cash to buy one and have it hauled in. I'd buy, haul in, and resell them on a note.

[ QUOTE ]


What's the population of the area? Low income housing?

[/ QUOTE ]

Its in a city of about 300,000. There is the possibility to replace homes and rent them out rather than selling them on notes. But frankly, that is too much management hastle, IMO, and the cash flow isn't that much better. However, I could get Section 8 approval on the homes and rent them that way. They'd stay full, thats for sure. Its a possiblity.