My wife, partners and I recently purchased a 12 lot MHP and are in process of purchasing a second 48 lot MHP.
The 12 lot MHP has four homes on it. One we are evicting, one is being used for storage and will probably leave once we raise lot rents, the other two will remain.
The 48 lot MHP has 36 homes with 28 rented. Several homes will be torn down, several may leave once we raise the lot rents, the others will stay.
While both parks offer tremendous upside the paths we will travel to turn them around will be different. With the 12 lot we are basically starting with a blank sheet where no tenants need to be retrained, no tear downs, no renters to convert to buyers and NO CASH FLOW only expenses. With the 48 lot we will inherit years of poor management where the tenants must be retrained, some homes must be torn down, and many renters must be converted to buyers, however, we will have positive cash flow on day one (excluding turn around costs).
Beyond thorough due diligence, understand what’s required to turn the park around. There are various forms of ugly each with their own pros and cons. Weigh the pros and cons against your financial, time and personal expectations.
This is my first post on this forum, however, I have been reading diligently for several months. My wife and I have been doing (non-mobile) pre-foreclosure short sales in Columbus, Ohio for the past several years. It’s refreshing to see that information and support are given so freely here as our short sales market can be very cut throat. This is truly a community that cares. Thank you all!
We will continue to share, and look for solutions, on this forum as we turn around our parks.