Hi all. Just put in an offer to purchase a trailer park in Southern California and we are closing escrow in 2mths. I have purchased another mobile home park before but that park does not own the actual mobile homes in the park.
Is there anything specific I need to look out for for the purchase of mobile home parks that owns the actual trailers? The cap rate is pretty decent and has been on the market for more than a year and I am worried that there may be other issues that I may have missed.
Am also looking for a professional management company to manage the park. If any of you can refer me to a good management company, that would be helpful.
For every Park Owned Home you will need to inspect and understand the current market value. For me that means what can I sell it for as it sits today. Find someone who knows mobile home issues, construction (if you do not) to get comfortable. If there are 10 homes and their aggregate market value is 50K, then I will add that to my calculated price if I did not own any of the homes.
Only other advice would to be to have a gameplan how you want to handle them post-purchase, keeping POH versus TOH. They both affect your bottom line and effort in different ways.
There are a lot of posts you can find on the forum on these topics, and also the MHU Home Study Course covers it as well. Good luck!