Hi Folks I asked this q down below a bit and I’m having another try at asking. I could be asking a dumb question so that is still a possibility. :)I’d like to buy a park in GA and the few that are forsale that I looked at had 30% empty pads, 10% abandoned homes. Septic per pad. To my untrained eye the pads look close spaced. Perhaps well within code of the 70’s and 10/12’ homes.What’s the risk to the business filling the empty pads with new inventory that will fit the width and length of the existing pads? My thinking is that the the current park owner didn’t fill the pads with income producing homes because there’s some serious problem. Of course the broker waved his hand saying the owner is old and just ignoring the park. I’m wondering otherwise. Like county regs forcing expensive upgrades, cement skirting or something?tnx Curt
The reason that you have vacancy in most parks is not demand, or getting permits (although in some areas that’s the case). The real reason is that there is no mobile home financing available for people with low credit scores and low down payments, which is 99% of our customer base. So the only way to fill a lot is to buy the home yourself and bring it into the park. Most moms and pops do not have the money or desire to do this. And it’s not a great idea to do in huge volume, unless you have the right property.Worse than the 30% vacancy issue you’re seeing is the septic issue. City water and city sewer are the way to go – very few buyers or lenders have any desire to mess with septic.A park built in the 1970s is grandfathered (assuming it was legally built) and has no concerns over new regulations.