I am interested in purchasing a MHP or RV to add to my portfolio for the first time. I have been going through the forum and podcast to gain knowledge. I have a few questions if you guys can help.
How do you guys determine lot rent comps? This site I am looking at is currently a RV park. The broker is stating to increase lot rent by $100 to $450 after some upgrades.
Does it make sense to convert a RV (long term MTM tenants) to a MHP? I actually just answered this myself. I read somewhere that the cities are not keen on allowing new or adding more MHP. So I guess I would leave it as a RV park with long term tenants.
Are there management companies similar to that of apartment building for RV Parks as I would be an out of state investor?
Any lender to mortgage broker recommendations for a RV park under $400k?
Any broker/agent recommendations to represent me in buying a site?
How do you guys determine lot rent comps? This site I am looking at is currently a RV park. The broker is stating to increase lot rent by $100 to $450 after some upgrades.
Do a google search for RV parks in the area you are looking to buy. Call them and ask for their rates. They will also likely have a website/Facebook page so you can see if the park is comparable with what you are buying.
Does it make sense to convert a RV (long term MTM tenants) to a MHP? I actually just answered this myself. I read somewhere that the cities are not keen on allowing new or adding more MHP. So I guess I would leave it as a RV park with long term tenants.
I prefer long-term residents. So do banks. Depending on the State/County/City you will find varying degrees of pushback or approval to making an RV park in an MHP. Some states are still the wild wild west.
Are there management companies similar to that of apartment building for RV Parks as I would be an out of state investor?
Yes.
4. Any lender to mortgage broker recommendations for a RV park under $400k?
Try a local bank/CU in the town/area you are looking to buy. Most Brokers don’t want to do deals under $1.0MM or if they do they will charge a minimum broker fee of $10k or more.
Any broker/agent recommendations to represent me in buying a site? www.rvparkstore.com
In regards to third party management, What the minimum size of RV park do they typically take on?
I have never heard of a minimum-size property for a third-party management firm. For example, some property managers will do a single-family home. However, with an MH/RV park, there will be a monthly minimum. Typically, the management company will charge a percentage of the gross rents between 5% and 10%, with a monthly minimum per property.
For example $2500/mo minimum up to 10% of the gross rents maximum. If you have a small property it will not be cost-effective to hire a third-party firm.