My parents used to say, “You can’t hurt the dirt.” The risks are small but they are there.
Bad Area / Bad Economy (or “goes bad”)
Code or Regulatory problems
Your tenants die off or move out and the homes are not worth buying at any price.
A “bad seed” starts to encourage retention problems or lead tenants in “revolt” against your vision for the park
Animal problems, such as stray dogs, or cats (we have had both of these problems)
Problems with City Hall (e.g. not working with you, working against you, or harassing you or your tenant base)
Not to mention all of the capital improvements that you need to put in over the “lifetime” of the various elements
Road repair - this is a huge expensive CONSTANT issue.
Water & Sewer pipes – excavation and replacement when trouble arises (how often?)
Electric pedestal upgrades & underground trenching
At the bottom of it all, a MHP is a plot of land with the utilities and parking. You have to maintain & repair all that and that (capital reinvestment) is a cost of doing business that is rarely talked about in this forum.