Hello Everyone,
I am planning to buy a mobile home community park which is less then 25 units and I am first time buyer on mobile home park and I need advise. When I look for the parks what should be my criteria? I mean I should look for parks that are owned by tenants and they just pay the lot fee or I should look for the parks that are owned by POH and tenant pays lot fee + rent or both the combinations . I will be operating remotely so I assume there should be a property management company to look into the property and tenants move in and move out and for maintenance issues. You can email me your suggestions to laxmichirravuri44@gmail.com and your help will be greatly appreciated much!!
-Laxmi
Do the frank and dave bootcamp. If not, do at least the due diligence manual for buying the park. Ideally your park would be in a higher lot rent market, have below market rents, the tenants own all of the homes, no park owned homes. buying it a fair or great deal.
I wouldn’t count on a property management company running your show. You will have to have some level of involvement on it for this size and your best asset will be a person at the park who is responsible and can be your eyes and ears.
Anything that deviates from above is still possible but just understand your risk, exposure, reduced upside etc.
Also consider travel costs, if you go there a lot that it can absorb this. If its an hour or two drive different story. But , if you buy closer and the market is weak, i don’t know about that as the mhp model makes a lot of sense in the better markets. Weaker ones, gladly i dont have enough hands on experience ( and hope to not). Most smarter guys will say the same thing so I listen to them.
Ideally you will not have a lot of turn either if its fairly stabilized. If you will be having a lot of turn or in fill, then make sure your numbers compensate for risk and fill up.
City utilities are preferred, you will save a lot of time and effort , grey hairs, buy the MHU diligence book , it will be the best insurance against a bad deal. once you come across the specific deal you think you want to pull the trigger on , reach out to the forum and get some direction.
Off market can typically be your friend as well for the better deals so keep that in mind if your current situation allows for it .
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