I know a lot of you folks prefer public water and sewer and TOH for a lot of reason I get that.
But for all of you who would consider a park similar to mine here is my experience to make it work
You get a whole lot more cash flow when you own the trailers. I understand the maintenance component but what trumps a lot of the issues is a well ran park manager and maintenance team.
From my experience the added cost for the POH nets me more then the expenses involved by at least 50%. Example my lot rents are $275 and my POH rents for $600. Out of the excess $325 I am keeping a minimum of $170. And this is not just regular maintenance. I actually put back $$ into improving the trailer like changing windows, skirting, roofing etc…
In terms of the private utilities I was able to recoup the cost of hiring the operator by charging each tenant $60 a month for water and sewer fee. This not only pays for the operator but also a reserve to replace pumps, fluids etc… I will admit there will be leaks that pop up here and there but the cost is taken cared of. We just don’t patch up leaks we replace whole sections with PEX. And in due time when your property is stabilized with rents you can start thinking about replacing all the piping in sections. This may seem expensive but again this goes back to maintenance team.
Yes the waste water plant may fail but as long as your operator is very experience and give you excellent feedback on condition and a contingency plan you will feel a whole lot better.
Also I personally would only consider doing this all over again only if the location is prime which my current park is. People are line up for applications as the city is getting to expensive to rent.
I understand the whole majority of TOH and city utilities for the financing aspect, upside and BRRR strategies but to have the one I have that I plan on keeping and passing on to my kids is something I will never regret acquiring.
It may sound like I perfected my acquisition with my strategy but I actually went through a lot of growing pains and losses through the process.
I just wanted to share this so people who are not familiar with this side can have a better understanding