I found MHP with 30% occupancy rate due to bad management. The owner is retiring and he wants out. The broker advised me that about 4 years ago, the city passed an ordinance that any mobile home older than 10 years old can not be moved into the park. I think this is one of the reason why the occupancy rate is down to 30%.
Is this a common ordinance? I have never heard of such restrictions. Do most of the HM parks have these kind of restrictions from the cities? I’m new to MH park investing so I don’t know if I should continue with due diligence on this park or move on to the next park. If I can get the occupancy up, I think this can be a great buy.
Any comments would be greatly appreciated.