I’m looking at a large park in a 100 year floodplain. We have always stayed away from these, but the price on this park is very good.
The park is, of course, in major distress. Whether that’s from a past flood or mismanagement I don’t know yet.
I’m curious if anyone has cracked the code on these parks - raising the homes five feet in the air, converting to an RV park where residents can pull out when the once every 30 year flood hits, having some sort of insulation product that doesn’t soak up water - anything like this allow a park in the flood plain to succeed in the long run?
I know there are issues with insurance, just curious if there is anyone with operational genius who has found a good way to use one of these parks.
From our experience will never AGAIN consider either a mobile home or rv park in a know and or active floodplain. The end solution was to have the county take over the flood prone property and make it into a daytime use only. Raising the homes whatever height is a night mare and all sorts of legal and insurance problems ensue if not today in the future and the value increase is very limited!!!
Some thing to consider: there are some properties that can flood that are not in a flood plan thus DD is very, very important and expertise in this area is very limited. We are still buying FAMILY OWNED and operated parks and at least 15% are questionable in that area. Being selective is Munger’s principle VR. Buffett that was buying ??? because the price looked ok—Munger fixed Buffett in that area and is now a billionaire.
Hi Will. You responded to a different thread, Im gonna give you a call this week in regards to investing together.
Our first MHP is in a 100 year flood plain. It is completely fine like any other MHP. Frank Rolfe approved the park we acquired in a flood plain. We also got a great price on the park.
Here are a couple key points to find out:
Understand very clearly the requirements from the county/township for the MHP. Such as, elevating the home X number of feet above standard flood plain elevation. In our case its basically about a foot or so above flood plain elevation, which means your blocking up the home slightly higher, not a deal breaker.
Consider obtaining flood insurance.
Make sure the county/township that the park is in provides you in writing that you are able to move around or rearrange lots in the park. With flood zones, depending on the county they may or may not let you rearrange homes, because it may be considered “land development” if the park you have is grandfathered.
All said, its not a big deal in a 100 year flood plain. If the numbers make sense go for it. Just be clear on the rules from township/county. We haven’t had an issue. If any questions reach out, but I’ll call you later this week. Hope that helps!
When your residents experience the problem personally and then the next buyer is very skeptical of the issue you might have thoughts why am I doing this. We experienced it with the county–they can and WILL change what you have on paper if it becomes a public safety issue. We have been in the business much longer than Frank and watching peoples homes flooded and needing to be abandoned is a very difficult seeing all their belongings destroyed—we went through the flooding that NEVER happened before. There is a reason the price was cheap—will the next guy want it also cheap??? Seeing people suffer and you know it could happen is a ??? Just our personal experience — there are plenty of great parks available without that negative DEFECT!! Is there is difference between a 100 year flood plain and a 500 year flood plain?? Many parks long time ago were built near rivers and streams–there was a reason—maybe you already know!!!