210+ Pad Park for Sale w/Seller Financing - $500k


Hi folks,

I’m under contract on a park in Alabama with over 210 pads that has huge potential, but requires more capital than I currently have, so I wanted to post it here to gauge interest in assigning the contract.

90% of due diligence is completed, and I’m an open book and will share all of my notes with anyone interested. Seller-financing is already negotiated on great terms. Park is distressed, this is a huge value-add play that requires someone with significant capital, probably around $500k or so. Details are below:

  • 210+ lots
  • 37 lots occupied - a combination of TOH’s and POH’s
  • About 50-60 abandoned mobile homes, maybe more. About half can be renovated, half to be removed and demolished.
  • Lot rent = $165 - $185 (market would support $200, although would be on the higher side)
  • Home rentals = $385 - $450 (the $385 ones can go higher)
  • Seller claims NOI was $4,400 per year, but through our DD we calculated it is realistically zero or even losing some monthly. This can easily be changed by taking the $3,500 monthly water bill and billing back to tenants day 1, and fixing several suspected water leaks
  • Area is BEAUTIFUL, I just drove the city and almost all buildings were built in the last 10 years. Neighborhood across the street is homes all less than 10 years old, one is one of the 3,500sq. ft. new construction McMansions. It’s this nice because the park is right on the Tennessee River. Test ad ran huge demand.
  • 2 Miles from Walmart Supercenter

I’ve been under contract with this property for a while now, but I think it’s too much for me to undertake and takes a lot more capital than I have, and I’m also looking for more of a cash-flowing property than a value-add one. Once the roads are fixed, the abandoned homes removed, the water leaks fixed, the pool filled in, and a few other projects are completed, this park has HUGE potential. If someone filled the park with all POH’s and rented them at $500 a pop, the park could generate over $1.3MM per year in gross. I’m willing to take my finders fee (included in the $500k price) and assign this contract over to someone else with more capital for the CAPEX projects and more experience in this field. Also, the property is confirmed to be able to be insured. This property is the “ugly duckling” in a really, really nice neighborhood in an excellent community, but it’s a real project.

I’ve done a ton of DD on this park so far so I’m fairly familiar with it. Send me a message or reply to this for any more info on the park - I’m an open book and will share ALL of my notes, tell you everything I’ve uncovered, share all of my pictures, etc.



Thanks everyone for all of the messages and interest! A few people have pointed out some areas I had forgotten to cover, which are the following:

  • City Water
  • All on septics (owner believes 1 septic tank for every lot)
  • Roughly 60 POH’s, with ~20 needing to be hauled off, 25 can be repaired and rented out, and 15 are currently rented out.
  • 22 lot renters
  • 37 lots total are occupied (16% occupancy)

Send me a message if there’s any other areas I may have missed, or anything else I can answer. It’s a great opportunity for the right investor with the capital for the CAPEX experience and capital (most likely around $500k in cash is needed for down payment & CAPEX projects).


Hi, what city is this in?



I may be able to assist you with this. Do you have time for a chat? Feel free to email me your number, if so. paul@commercialcapitalresources.com.



Thanks for the message. It’s in Scottsboro, AL. Let me know if there’s any other questions and I’ll let you know.




Hi Paul,

I just sent you an email. Let’s go from there and we can discuss.




Hey Peter,

We looked at this park a while back and thought it best to view as a new park development. If I remember correctly the underground electrical looked shot as well. I like the saying, “as above, so below” which means that if the park above ground is completely neglected, the underground isn’t in too good of shape either.

If you view it as a development, the numbers are closer to $12-15k per lot to get this park to a modern level. Then you have to decide if it’s worth it to build a new 200 space park in Scottsboro. We decided that it wasn’t, but you may have a better understanding of the local scene and the TVA project that was slated to begin nearby.

Best of luck. Triple check for flood plain issues! Will


Hey Will,

Thanks for the note! That’s the 10% due diligence we haven’t yet completed - professionals brought onsite to check for all the underground infrastructure. Which part of the underground electrical systems looked shot, do you remember from your visit? We budgeted $200k out of the $500k of capital to replace the above-ground electrical boxes, since many had “X”'s written on them. Do you remember how far back you looked at the property, and did you also have it under contract?

Do you remember encountering any issues during your visits with flood plains, as well? FEMA maps indicated it was outside of the 500-year plain, even though it was so close to the river, and I spoke with the insurance broker who mentioned the location was very windy but I didn’t hear of flood issues, but that would be good to know if there was.

I did hear about the TVA information bringing ~12,000 jobs to the area, but my DD didn’t give it any weight since it was still in the works. One source of housing demand was the new $600MM Google Data Center being constructed just 30 minutes north of Scottsboro which is in the initial stages of development. The data center would only employ 75-100 workers, but the construction of the site would bring many jobs to the area. That project we did give consideration to since it’s approved for development.

Thanks in advance for the additional information on the park, Will. It feels like a small world in this niche when we know of each other’s parks.



Hi Peter,

We met with the owner on site and toured the property. To be completely honest, a lot of my concerns about the property are assumptions based on the condition of the homes, the personality of the owner, and the extremely low occupancy.

You could be sitting on a great opportunity. If it were me, I would only pay her for the occupied lots and some (very little) land value. Don’t give away your upside with a large purchase price. The park has been for sale for years if that means anything. Filling 150+ lots in Scottsboro will be a tremendous expense and effort.

Just a word of caution, that’s all. I’m sure you can handle it. If you can, and the people move in, that will be a fun and rewarding turn around. All my best. Will


Hi Will,

Agreed - the predictions for repairs on the POH’s from the seller were way off. The ‘estimation’ was $500-$800 per home, but once we arrived we realized it was more in the $8,000 range per home. We budgeted that in the $500k turnaround budget, as well. I know what you mean about the personality of the owner - I will leave that one at that. The low occupancy was a concern as well, but we also realized we were under contract on this one at under $2,300 per lot and we originally valued the property based on NOI + nominal value, if any, for the empty spots.

Filling 150 lots will definitely be a big expense, as with adding homes - but our test ads ran very favorably and the next buyer is welcome to test that and run their own set of ads as well. It’s definitely a great opportunity, but I already have large one value-add property in the South I’m working on, so my main goal is a nice cash flowing property right now. I also agree and don’t think Scottsboro has the rental prices to support a new construction of a park, but I think this could be turned around for ~$300k-$500k, which would include the repairs of the 20+ onsite homes.

Thanks for the insight and input, Will. It’s more capital than I’m looking to outlay and more intensive in the operations department than I’m looking for, but I may end up doing it if I can secure a decent enough rate on a hard money loan. Time will tell.




Good morning,

Did you close on this deal?

I might be interested in it if still available.



Hi Jim,

Thanks for the question - I did not move forward with this deal and I believe it may be under contract with another Buyer. I appreciate the question, and best of luck on the future mobile home park deals!