40 lot park - needs everything new - is it worth it?

We are looking at a 40 pad park in a tertiary market in Ohio.

At first glance it looks like it needs everything - Clay tile sewer, master-metered, 40-50 yr old electric 100A services that appear to be looped in series.

20 homes present all Owner Occupied - most form the 70s. I know, I’m painting a picture here…

Solid, blue collar folks, been there 15, 20, 30 yrs - but needs all new everything.

Under contract for a ridiculously low price (price of a car) - but did I mention it needs everything. :slight_smile:

My questions is - we’ve done water, we’ve done sewer, we’ve even done electrical upgrades - but never the Trinity - all in one park.

Any input for this small, but potentially profitable turn around? Profits will go in my partner’s self-directed IRA.

I have done the “Trinity” before – I had a park with clay tile, master-metered electric AND gas, metal, corroded water lines, roads that were shot and 50% occupancy of mostly old, junky rentals with hillbillies in them. It worked out great in the end, but was a continual crisis for years. What made it worthwhile? Incredibly hot market (inside the loop in Dallas, with metro population of 5 million). That’s what made the phone ring, and the exit strategy possible. If the market had been a little less hot, it might have been a disaster. We like the state of Ohio a lot, having owned parks in the metro Columbus and metro Cincinnati markets. So I think a lot of this deal is going to hinge on just how hot your market is. I’m sure you can physically get the repairs made (and write a bunch of checks) – but is the market worth that much exposure and grief?


In Ohio, the regulations and costs are very high. For example, everytime you move a home there is a $750 permit fee (tax) and all installations must be done by a Ohio licensed installer. There are not many of these installers and they all seem to charge the same high prices. It costs me 2 to 3 times as much as in Indiana.

I’m sure you are very effecient in the KY, but going outside might be hard.

Ultimately unless the park is great area it is probably not worth it, as 40 space parks in OH don’t have any great exit strategies.

My 2 cents

and in Ohio we now have a brand new Manufactured home Commission that just sent everyone a letter stating:

“Please note per the Ohio Revised Code (ORC) 4781.121 effective December 1, 2012 the Commission may impose a fine to any “person” violating our Laws up to $1,000 per violation per day, subject to the 119 Hearing process. This includes any licensed or unlicensed individuals such as unlicensed installer and unlicensed dealers, brokers and salespeople. If you have information about unlicensed activity or violations of our Laws after December 1, 2012, please contact our office so that we can bring these individuals before the Commission and make them compliant. Your assistance in creating a level playing field for all would be greatly appreciated!”

I think they may also water board non compliant operators as well but I’m not sure

Ohio is a GREAT state to do business in

On the other hand, by making it very expensive and cumbersome to move a home in Ohio, it also makes it very difficult for a resident to move their home out of your park. We have parks in Ohio, Kansas and Oklahoma and the regulations are night and day. In Oklahoma, its incredibally easy and cheap to move a home in your park. But, this also makes it easier for residents to leave.

What are the costs of moving a home in Ohio?

my experience in Ohio is that if it is a good home they will find someone else to buy it and move it… or if it is an older home they just leave the keys on the kitchen table (if you are lucky) and get a friend with a pick up truck and move out in the middle of the night, sticking you with the expensive legal process of having the home declared abandoned

In ohio that process involves filing for an eviction ( and it’s always a problem finding them to serve the papers)

after getting a writ of restitution you have to have the home appraised by court designated appraissors at your expense ( usually 250 to 350 per appraisal)

if the home is worth less than 3 grand you go back to court and ask the court to give you title

but if the home is worth more than 3 grand you have to undergo a sheriffs auction process ( again you foot the bill)