Buying an MHP

I will soon have approx. $600k to invest in a MHP. Is there a guideline or rule of thumb as to what value of a park I might be able to purchase. I am making an investment for my future. Any input you may have will be greatly appreciated.


Let’s work backwards on that. First of all, you would not want to put 100% of your money into one deal. You need money in the bank for security, plus money to buy a second deal if you find one that you like. So if you ear mark $200,000 for your first park, and assuming that banks want 30% down, then you’d be looking for deals around $600,000 with bank debt. Seller carry is normally based on 20% down, so that would be $800,000. Based on where in the U.S. you are looking, you could find good deals at around $10,000 to $15,000 per space – based on the type of turn-around they need – so you’re effectively looking for parks in the 40 to 80 lot range. This is a good size, as the institutional players are looking for 100 space and above, so you are flying under the radar of many buyers.

Before you risk $200,000 though, be sure to read up as much on the business as you can, so you do not get stuck with a lousy park, as there are plenty of those going around. Stick with city water & sewer if you can, and stay away from bad markets, bad utility construction, and bad problems. You can find a complete list of these items in our Home Study Course, or you may be able to distill it from the articles on the website. You are better off buying no parks than buying bad parks.


I love Frank’s advice - and/or find a experienced, trustworthy operator who is looking to expand his operation. a portion of your funds in a well-managed park is in the “Warren Buffett zone” of investing.

“Find someone who is batting .400 and invest in them.”