Buying and managing smaller park out of state... is it worth it?

mobile home university
1

What do you guys think of buying- city utility, mostly tenant owned homes, 20-35 home parks- out of state and still being able to manage effectively? My fear is buying these and hating my life because are a pain to manage and smaller so not getting that much actual cash flow out of them.

A typical park looking at is Good MSA, 20-35 homes, city utilities sub metered or direct bill, mostly tenant owned homes, small foot print parks with minimal trees, 9-12 cap at purchase up to 14-17 cap after rent increases.

Would you guys feel comfortable buying a park like this and managing out of state? If so, how many hours a week would you budget of your time for management?

Any tips on best ways to manage a small park like this from a distance?

2

I would be really excited by a 9-12 cap rate with room to raise to 14 on rents. I think the market is generally 7-10% (or 5.5-7% for some parks). I am not sure you are factoring in all the expenses. Roads, pipes, and septic systems all need replacing at some point so you should allocate some money for that. Plus you probably want to pay for an onsite manager. As for the time and effort of managing it someone with more experience than me would be a better source.

1 Like
3

No way!!Not even 30 miles away.

1 Like