Hey all, I’m new to the MHP thing but have been reading like crazy and so far it appeals to me more than flipping or multi family homes. Everything I’ve read says to stay clear of California due to price, potential for rent controls and environmental concerns. Anybody doing anything in California?
Nope. I’d just echo what you’ve heard. There are two markets in California:1. The ‘Coastal plus Sacramento’ markets that are overheated, are (nearly) 100% physically full and have high lot rents and/or rent control (e.g. no upside) and trade at a 6% cap, and2. The ‘dying little Central Valley town, or in-the-boonies High Sierra town’ market. These can trade at 8% - 10% caps, but have high unemployment, and MHP owners have to shell-out 5- and even 6-figures every year to keep MHs in their communities, lest the be bought-away by MHP owners in the healthy parts of California. Even once they buy the MHs, they are difficult to find qualified buyers for.It’s just so, so, so much easier to find good deals in the Midwest, and with the skills you’ll acquire at Bootcamp, you’ll be able to manage from afar.My 2 cents worth,-jl-
Not doing anything in California either. Now and again you do come across things there that make you reconsider, but for the $$$ you’d get a better deal elsewhere. I saw one a while back, but the deal killer there was master meter electric/gas. If I’m going to do Master meter, it ain’t gonna be in California, that’s for sure.
Ari, isn’t that a great opportunity to buy low, meter the joes and increase the bottom line by reducing expenses? This seems to be equal to raising rents when I see “opportunity” discussed.
@Todd,It’s all submetered already. You can see my discussion/questions about this further down. I’m not interested in becoming an electric and gas utility, certainly not in California.