Hello all. I am looking into buying my first park within the next 3-4 months. I am pretty young and just bought a house so I don't have a lot of capital to put into the business. I have been running the numbers and if I go through a private/hard money lender for down payment + seller financing for rest, my debt service will essentially eat up all of the operating income.
That's actually ok with me. I have a job that pays decently, and I really just want to build equity right now. While browsing loopnet and MobileHomeParkStore I have seen 2 types of parks: fixer uppers that require a lot of capital but have a lot of upside and established/well run parks that have good income, but not as much short term upside potential. When I say stable income I mean something like 95% occupied, many long term tenants, no need for high cost repairs in the near future, etc.
My question to the successful MHP owners here, if you were in my shoes would you try and go for the fixer upper or a well run park for your first purchase? I'm leaning towards a park that is pretty stable and will give me time to learn the role while not having to make too many costly mistakes. If I don't make a dime on this for 2-3 years that's really not an issue for me as long as I'm building equity.
Any constructive advice/criticism is welcome.