Buying vs. Building a park

I am a real estate investor, but brand new to mobile home parks. I have an opportunity to buy 2 acres for less than 20k, about 30 miles from a very large city. Currently, there is one mobile home on the acreage that is being rented for $700/mo. The seller has electric ran to three more “lots” that don’t quite exist yet. He has two septic tanks installed. Water only to the first home. The land has been completely cleared. There are no building restrictions. Dept of health just says there can only be two homes per septic tank.

Should I buy and build, or should I invest in a park that already exists?

Whoa. Your first step needs to be to attend Frank & Dave’s upcoming Bootcamp in Denver (full details available on this website under ‘Books & Courses’). But long story short, unless you’ve found undeveloped land in mid-town Manhattan, you don’t want to develop a park from scratch. You want to buy one already up and running. Preferrably with 80%+ resident-owned mobile homes. That would be a good starter park that would still let you infill and learn about being in the housing business.



P.S. I receive no compensation from anything sold on this website. Unfortunatley. ; )

Funny that you just asked this question. I just finished uploading an article Frank just wrote on this topic. Check it our here: Why You Should Never Build A Mobile Home Park

I hope it helps to explain why building a new mobile home park isn’t such a great idea.

~Brandon Reynolds