Would you buy this MH Park?


#1

Hi all,

Just wanted to get a second opinion on a potential park purchase. Here are the details:

18 space MH park - park has 17 park owned RV’s and 1 park owned old mobile home
Seller financing
Dirt roads
City water/city sewer
A neighboring park charges 500 per month for 2 bd MH and 550 per month for 3 bd MH
Separate empty 10 space park included but only has a couple pads on it

The seller said they were renting out the RV’s as mobile homes basically.

Question: Has anyone tried using RV’s instead of mobile homes for long term rentals? How do I value a park like this? Any suggestions?

Thank you!

RJ


#3

RVs are pretty fragile creatures and do not do well as rentals. They damage easily and are tough to repair. We have a long term RV park with very large MH size lots that is very very popular and has zero turnover. Rents are higher than with a standard MHP. Given my experience I would say it is worth only the ground and the utilities. If it was me… I would do one of two things A) sell the RVs to the residents for a rock bottom price then run it as a long term RV park. Residents can take care of the RV maintenance. Then work to clean the park up and make it very attractive to future long term RV tenants. Or B) pay for the dirt and utilities only and gut the whole place and start over with tenant owned long term RV residency.


#4

Thank you for the reply. Based on your response, I think I would be overpaying for this park at the current price I discussed with the seller.

For the amount of work, time, and money to turn this park around I will need to negotiate a much better price.

Thanks again!

AJ