I’m in the process of acquiring an 8 unit mobile home park in the Houston area.This is my first time in the business.The park comes with 2 homes which im willing to give one to the manager at no cost if they just collect the rent for me and watch over the property.There is currently a guy there but he is unreliable he never picks up my calls.Currently there are no tenants there because the park was vandalized.I was thinking about making this a 55+ up park Any ideas would help or if any elderly couples are interested in this opportunity please email me at ellaninternational@gmail.com or message me on this.Thanks
OK, you’ve got a lot of issues here that concern me. The first is that you are valuing this park right. You have 8 lots. How many are occupied currently and what is the lot rent and who pays the water and sewer? You cannot afford to give a free house as compensation for a park this size. The going rate is lot rent only, and you want the manager to own their own home so they have some “skin in the game”.You cannot make this a 55+ community as you would need permission from HUD, and the park is too small to handle the legal cost to do so.When you say the “park has no tenants because it was vandalized” do you mean that nobody currently lives in the park?The only positive I’m hearing so far is that it’s in Houston.Don’t buy this thing until we have a chance to analyze what you’re doing – for your own protection.
Frank,Thanks so much for responding.The park was run down because the owner financed it for 200K to another individual and long story short he ran the place down. And im purchasing it for 50K. The park has 2 homes on the 8 lots which are vacant and i was going to offer one of them as free rent. I live about 45 min away from the property so it will be hard for me to check on it frequently. Im good with marketing and the average lot rents for $275 to $300 in the area and the other parks are all 100% occupied. The tenant will pay their own water, trash, and electricity. The only thing i was going to do is rent the lot out. Frank you opinion would be great regarding this matter im in. Any help would be appreciated.Thank you so much!
The previous owner owes $1800 the the water district i confirmed with them on that. They will turn it on once i pay that bill.and the old owners are in Oklahoma so thats why there selling it.
Are you aware that, to bring in 6 homes to fill those vacant lots, will cost around $120,000 to $180,000? You can maybe do a deal through the Legacy Park Finance Program for $40,000 to $60,000 in cash and they carry the rest. The park may seem cheap, but it will require a huge capital commitment to get homes in there.
yea but i was looking for people to bring their own homes or rvs and i was just going to rent out the land a connections what do you think?
Nobody is going to bring their own home in, and modern RV parks have a bunch of amenities which you don’t have. An 8-space park in Houston will be all about affordable housing, and those customers have zero credit and no money to put down, so buying a home and bringing it in is never going to happen. We value vacant spaces at -0-, so the park is will only have two occupied lots unless you buy homes and bring them in.You need to be happy with that scenario, put together a plan to buy homes, or bail on the deal.Just trying to keep you out of trouble.
Take Frank’s advice and explain to the seller why their park is worth $0 in it’s current condition. Try and persuade the seller to finance not only the purchase of the park, but also those homes. Restructure this deal as a partnership with him. He puts up all the capital, you do all the work of infilling, and then the two of your split the profits at sale in ~24 months when the property is full. You put up $0; he puts up the $120,000 - $180,000. You put up all the time, and cut your teeth on a challenging deal, but with no financial downside for yourself.Your mileage may vary,-jl-
Thank you guys for the nice feedback i will def reconsider this as im a begginer.