I have been a landlord on condos for a few years, but I really want to look at purchasing a park. I will only have about $30k to put down - that’ll leave some money for incidentals, maintenance, etc. Is starting out with a small park an okay idea?
Thank you in advance.
Sure. But $30k is not much to start with. Make sure it is a small park, try and get seller carry, and keep, say, $10k in reserves for unexpected items and/or to rehab existing MHs in the community or to purchase MHs to infill.
On our first deal, for every $1 down, we invested another $4 in infilling the park. Your park may well (hopefully) be more full, but but you don’t want to be in a position where you have put every last nickel into the DP and have no cushion.
To your continued success,
-jl-