We were given the deed to a 12 lot mobile home park. The lots haven’t been occuppied in 14 months. Prop. has been appraised at 50k, however I’d rather rent them out for monthly cash flow if that is more profitable in long run (I’m 47 and patient on ROI). Where do I start re: learning about the basics of MHP ownership/rental/tenants/etc.
Thanks folks,
Keith in SC
Keith, where in SC are you located and where is the park?
I have L/H properties all over SC and have had a park.
Bill
Start by doing to your various departments in the jurisdiction of the park to determine if the park can still operate as a park and what you would need to do to accomplish this.
Some areas have odd rules when cities expand (don’t ask me how I learned this) which may prevent the park from operating after a vacancy of a certain time period (say 6 months).
Then there may be concerns such as electric upgrades. Many of the older homes were set up with 100 or 150 amp panels in my older parks for example and the newer homes need 200 amp panels. This upgrade can be expensive.
Septic inspections will likely be a first step but in my area this means they walk the park looking for puddles and stink which since the park has been vacant for 14 months is not likely to be the case.
Despite this “gift” you need to conduct your due diligence as if you were starting from scratch.
This may be a great deal or you may find like many deals have taught me is that “free” ends up costing me more but your due diligence will be the deciding factor.
Tony Colella
Hi Tony,
Thanks for your input. I know I’m going to have to clear out overgrowth and any trash. Amen on due diligence, you’ve given me a start. I looked at the Forum sidebar and saw ads for literature and studying aids. I have no problem purchasing these if the park is viable.
Do county/state laws vary differently from stick homes vs MH’s? Where should I start my due diligence as far as county/state agencies?
Won’t bother you w/ a lot of questions…I know I need to do my own research…just need a start in the right direction.
Thanks again,
Keith
Hey Bill,
The property is right outside of Greenville…
Keith
Hey Keith,
Each area seems to have different names for different gov’t agencies that will play a roll in your park turn around.
You might start with the planning commission. I have found these folks seem to have a better macro view of the issues and from there they can direct you to the individual agencies such as permits, inspections, environmnetal health etc.
Hope that helps.
Tony
Keith,
Adding to Tony’s response: I would find out which agency provides the MHP operator’s license and start asking questions about what it would take to get it re-licensed in your (newly formed) LLC name.
BTW, did the county appraise it for that amount? You may want to dispute it depending on circumstances.
Steve
Post Edited (02-10-11 17:13)