How Do You Manage MHP From Different State?


#1

Hi everyone,

I’ve learned a lot about mhp investing from reading through the forums and on this great site in general so I thought it’s about time I ask one of my own questions! My husband and I own a handful of single family investment homes so aren’t total newbies when it comes to real estate investing but are looking to scale and make the jump into mobile home parks. We plan on attending the boot camp in Orlando next year and are doing tons of reading, research, etc.

My husband is in the Air Force and will be retiring in about 4 years so we are looking to buy 1-2+ decent sized communities (at least 40 pads) that would earn great returns/cash flow. As is the case in the military we will probably be moving to a new base or even country in the next few years- is it feasible to own a mhp from a different state and how would we go about hiring a trustworthy manager or operator? Are there businesses that provide mhp management so we just pay them a monthly fee or % (like in apartments, etc.) and they take care of everything? We are a little nervous about the management of it all, knowing that we probably won’t be living near one that we buy and won’t be able to check up on it frequently. How have you found the right person/people to make sure the park is safe, running smoothly, tenants paying on time, etc.? Any advice or help is appreciated!

Thanks,
Tiffany


#2

Tiffany

Lets stay in touch

What is your contact information ?

Email it to Michael@Strattonre.net

Netincomeusa.com


#3

Hi, do you offer park management or can offer advice on my questions? Thanks.


#4
  1. Is it feasible to own a mhp from a different state? Absolutely.
  2. How would we go about hiring a trustworthy manager or operator? Preferably, buy a park that already has an onsite manager.
  3. Are there businesses that provide mhp management so we just pay them a monthly fee or % (like in apartments, etc.) and they take care of everything? Yes, but you can do better by having an onsite manager.
  4. How have you found the right person/people to make sure the park is safe, running smoothly, tenants paying on time, etc.? See #2. However, finding the right manager shouldn’t be too difficult. I think I’ve come across one or two podcasts on this topic.

Take this time to learn everything you can about MHPs and to start your database.


#5

I own parks in multiple states. I hire a resident as manager. I also have live cameras that I can see from my cell phone to keep an eye on the places.

Onsite managers have limited options to screw things up.


#6

Tiffany,

It is absolutely possible to manage park remotely. I was in the Army 7 years and definitely understand how hectic it can be with the moving/deployments. To answer your question more in depth, it really depends on what type of park you buy. If you get a park that has a lot of issues/POHs, then you’ll certainly need to be more involved/probably pay the manager more.

I bought a turnkey park and my part time manager probably does around 1-2 hours of work per month for me and I do maybe 2 hours of work a month. I love this setup and the upside for me was that the lot rents were significantly below market.

As far as finding a manager, as soon as I purchased the park I sent letters to every resident letting them know of new ownership as well as rent increase. I made a note in the letter that I would be looking for a part time resident-manager and had about 4 calls. I conducted the interview over the phone and did the background check online.

It can definitely be scary at first but if someone doesn’t pay then immediately send the 3/5/10 day notice and that will usually get them to pay quick. Good luck to you.

Dominic


#7

Thank you so much to you guys for responding, it’s great to hear first hand from other owners that it can be done and if done right, not be a huge headache. So I’m thinking we’re going to have to start looking for a more turnkey park…probably more expensive but better for our situation. How did you guys find your first parks? We’ve looked on the usual sites (loopnet, mhpstore) and have made contact with some sellers but a lot of times they end up not being serious sellers or aren’t all that honest and up front. We’re going to start contacting owners directly through direct mail, etc. which seems to be the most effective way of singling out our preferred type of parks- any tips you can offer? Where are the best places to get/buy accurate owner contact info? Thanks again!


#8

It certainly is feasible to own and operate a park from another state, as others do it all the time. From another country is another question, and I would not even try that. From what I’ve heard from others, using a management company usually ends less than satisfactorily. You need a good park manager that works for you…and preferably lives in the park.