Hello everyone! I am new to this type of re investment. A little back ground about me is I started a company with my best friend a year ago where we invest in low income rental properties. We have really enjoyed the experience and are continuing to grow. My full time job has me interacting with very wealthy individuals on a daily basis. After meeting with a high end client the other day we got on the subject of investment properties and at some point I mentioned I wanted to one day get into MH parks but as of now felt like they were out of my league. He then told me he owned 6 acres on a local lake that already has boat slips that he rents out but would be very interested in us going into business with him providing all funds and me providing all the leg work. Sounds like a great opportunity possibly but I am completely unsure what would be an appropriate percentage of the company that would make it worth my time. He also owns 35 acres on the other side of the lake that he would be interested in developing also but is less accessible. Alright so give me the good, bad and ugly please!
Chris
I’m not sure that mobile home park is what you want to build on the 35 acre location. I think that land/home is more appropriate. You would divide the property into one acre lots, and then sell them to people who would bring in double-wides for lake homes. You might be able to get $30,000 or so per acre under this program (you need to do a lot of diligence on this). On the 6 acre tract, you would need to run a test ad to determine actual demand, and then get an engineer to figure out how many mobile homes you could put on the property (I’m guessing around 50). He would have to spend around $1.5 million on buying the homes, and probably another $600,000 in buying the park. I doubt the numbers are going to pan out on this, and you would need permits, city water and city sewer to make it even have a chance of working. That’s why there are so few new parks build in the U.S. each year (we estimate only 10 per year). But land/home – around lakes – is pretty common if the area justifies it. They are normally serviced by city water and septic (one tank per acre).
So what you are suggesting is we as the property owners would own the homes? I was thinking we would purchase a few and then let tenants bring in their own homes. So can a septic system support a park? That was one of my big concerns since there is no city sewage.
There are virtually no homes sold by dealers that go into parks anymore – there has not been since around 2001. So you would have to bring in every home, in all likelihood.You can run a park on septic, but it’s not our first choice. You’ll need full permitting by the city/county/state to do it, and they may not grant it.If you go the land/home route, then one septic per acre is pretty standard stuff.