I’m putting together my due diligence criteria and wondered what is the impact of having several MHP’s in an area? Does that make it more or less difficult to rent your lots? or is it not a deciding factor.
Also - is there a good resource, either on the forum or in the MHU publications/books that we could use to as we start to draft our due diligence criteria?
Thanks
Multiple properties in a single area is an economic preference and carries both benefits and risks. I wouldn’t call it a deciding factor for me if the market is diversified and has a strong track record. Make it a personal criteria that you would want to buy multiple parks in a location when you purchase your first one there and it simplifies everything.
Also check out the MHU Due Diligence Manual to formalize your criteria. Everyone approaches park purchases differently and you need to tune this for your investment criteria.
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One major advantage of owning several parks in a nearby vicinity is that you can use the same contractors across properties. We own several parks within a 3 hour drive and it has been helpful because we can send our maintenance crew to all of the properties as needed. When there is nothing to do at one property, we send the crew to the other. Also, you have a backup in case your manager goes AWOL, etc.
Also, when sourcing deals, it is much easier when you already have a few properties in the area. Brokers and other owners get to know who you are and deals may come more easily.
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Thanks for sharing the resource recommendation and your experiences. We are going to look at a small park (10 pad) tomorrow. Its a start!