I need help buying my first park


#1

This park has 30 pohs and owner is elderly and very stressed and tired. She has had several people really close pass away. They do biannual walk thru of their homes and I truly believe she takes really good care of her pohs. She says I can’t go thru each home to inspect as it will disturb the residents and be a major inconvenience to her because they recently did the walk thru. My attorney has advised strongly to inspect each home. I could try to keep some money held in escrow until I do next walk thru, but I think this is not going to be an option. Is there another way I can do due dilligence on homes without going inside? I can get P&L and get an idea, but don’t want to make a huge mistake. I truly appreciate any and all help. Thank you!


#2

If you’re familiar with MHP’s and/or have fished around MHU, you probably know not to capitalize home rent, only lot rent. So assuming you are only capping lot rent and paying market value for the homes what price are you paying per home? How old are they? If you’re paying a fair price (think ~$5-10k for 80’s home in ok condition) then I would at least try to audit a few MH’s. Tell the seller you’re ok not going though all 30 but you’ll pick 6 or 8 at random to walk through. That will probably give you a good idea what the condition of the herd is. Good luck!


#3

That sounds like a good idea, thanks.


#4

The biggest protection is to hedge with the purchase price.

Can you talk to tenants to gather intel?

Old listings online with interior pics?

Outside look ok? ( though that wont necessarily mean inside is ok :slight_smile: ) or vis versa


#5

If the units are currently occupied and rented, there’s only so bad they can be. Right?


#6

Yes sir, great point.