Hello every one.I have the opportunity to purchase 5 acres for a really good price. I was thinking of turning it into a mobile home park. What do you guys think.The property is about 80 minutes from NYC and about 30 minutes from the county downtown area.How many homes can I fit in 5 acres?what departments should I be contacting?I want to use public water and sewer. How do I go about setting that up?Thank you.
The costs involved to set up a park are as follows.Land, Permits, lot survey, roads (paved), septic bed, drilled well, buried water lines, buried septic lines, septic holding tanks (5 homes per tank), lift talks and pumps if required, hydro lines/poles and various sundries. A lot of 5 acres could fit 30-40 homes depending on frontage requirements.You could be into it for $400,000 to $500,000 plus the cost of the land and at that point have a vacant park. You would then need to bring in and sell homes. You would likely be in negative cash flow for up to 15 years depending on how well the homes sell and how much money you have to invest in homes. When all done you will have more into the park than it will be worth which means you can only hope to have positive cash flow at some point in the future, or maybe your children will.
You probably should not do this deal. Here’s why:http://www.mobilehomeuniversity.com/articles/why-you-dont-want-to-build-a-mobile-home-park.php-jl-
Thank you for your reply. Yea, that’s way too much. Do you guys have any other ideas or suggestion on what I can do with the land…besides building my own home…
Depending on it’s cost to hold (taxes etc.) probably not buying it would be the best plan unless you could build and sell a house to make a profit. Does the township let you divide smaller than 5 acres.
If this property is in the path of progress it might be a real good deal. Although 30 minutes from the downtown area might be too far for path of progress investing. What is the current zoning? How about planting trees on it? Hardwoods may do well in that area. And what are the surrounding properties doing?
You may also tie it up with an option and then attempt to flip it if the price is truly amazing. Assuming you are buying it at roughly 30-40 cents on the dollar, you might be able to sell it for terms and create some passive income while still recouping most, if not all, of your purchase price through the next buyer’s down payment. Try to give yourself at least 45 days to find another buyer and start by marketing it to the neighboring property owners.
It’s zoned residential.Im not sure if can divide the acres. I’ll find out.
If you do pursue a change of zoning to R-3, or whatever MHPs need in that area, please keep the forum updated on your progress. Thanks!
If you do develop a property, I recommend you set up a separate entity / LLC to manage the development and even own the property during development. Then move the park to a new LLC upon completion. The idea is to leave behind a shell LLC with no value should anyone sue you for issues associated with development liability.