If not a park, then what?

We have a small park in Arizona, and two homes in southern California. If I sold them all, I would have about $1.2M total, and about $800K taxable. I wouldn’t mind rolling it all into another park or two, but I wonder two things:

  1. If I didn’t want any more parks, but didn’t want to pay the huge tax bite, are there any other 1031 exchange-types that folks have done and were glad they did? Is there anything else I can do with that money and avoid the taxes?

  2. If I do sell all and am willing to stay in parks, should I have one, or two? I like the idea of just one because I could get a higher-quality park, with hopefully higher-caliber people (yes, I know, there are always exceptions; but on average…), nicer looking, nicer area, etc, etc. However, having all my eggs in that one basket worries me. What if that town gets wiped out by a hurricane, etc, and becomes a ghost? That is, for some reason, becomes an undesirable place to live. Instant no income. Having a second park diversifies, which is good, but doubles the management headache, and I’m back to a lower-quality park…times two.

Any thoughts?


What is your target investment return on the mobile home park(s)?


Many different avenues to choose from with a 1031 exchange. I’ve heard of a lot of different things that I haven’t tried due my personal investing criteria. Post office buildings in which the government signs (and pays if they leave) 30 year leases, Dollar General and Family Dollar store buildings are fairly popular lately, CVS and Wahlgreens buildings, Oil Partnerships can be utilized with a 1031 but low interest mortgages cannot be used which is a major disadvantage. All have their own game that is worth researching. Hope this helps!

It’s been 13 years since I did a 1031 exchange, so my information is not current.

But, at the time; it was required to do “Like” exchanges. Example: Rental apartments for rental apartments. I don’t know whether a Rental home for a

MH Park would be acceptable.

But I do know this: It’s better to find out in advance than after-the-fact. - Your accountant should know.