We currently own 4 parks that that are approved for expansion.
I’m looking for recommendations from those who have experience with this sort of thing. I’d like to see what types of financing options are currently available in the marketplace for these projects. I’d also like to see if there are any specialty firms in existence who assist in managing expansion projects for mobile home parks.
How may pads per park, existing and proposed?
Charles - I spoke to a guy yesterday that just completed a 60 pass expansion in Central Florida. I would be happy to pass along his information.
Park 1 has 42 additional lots approved for expansion (76 existing)
Park 2 has 70 additional lots approved for expansion (151 existing)
Park 3 has 30 additional lots approved for expansion (68 existing)
Park 4 has 24 additional lots approved for expansion (124 existing)
@Keystone thanks you. I’d love to speak with him about how that project went.
I’m just curious, approvals for MHP are notoriously hard to get. Any stories to share? How did you get the city or county officials on board?
Did you / will you have to pay tap fees or other per-lot fees on top of construction costs?
What do you figure you per lot cost of construction will be and how much of that is roads?
What’s your local lot rent and how long to fill?
We have some adjacent land and huge demand but so far we’re stuck getting the local authorities to tell us what’s required (e.g. tap fees) and City council is not on board… I’m trying to estimate costs of construction on a per lot basis to compare to the annuity of lot rent…i.e. $35k cost of expansion (per lot) and $350 monthly rent equals 12% annual return before operating expenses…
I may be able to connect you to someone who can finance these expansions with long amortization period, long term fixed rate, non-recourse debt. If you’re interested email me at pjshapiro@hotmail.com.
I’m pretty ignorant on this, but I’d first call around to engineering firms, and try and find an engineer that has practical experience.
When I redid my water lines I searched around quite a bit before finding an engineering firm that could draw up the plans and had done similar work. They told me if I ever did an expansion to keep them in mind and they’d be interested in helping out (this was in Michigan).