Hi,
I am interested in investing mobile home park either in Washington or Florida, not sure which state is better?
Thanks for any input!
Why just those 2 states?
Are you OK with paying ridiculous (read: non profitable) price tags in either state? Parks tend to be overpriced in both of those states from personal experience.
Check the pulse of state/local level politics in both states as well - it makes a huge difference with landlord friendly or not. I’d never buy in CA or NY - because politics.
Both Washington state and Florida offer opportunities for mobile home park investments. Washington has a stable economy and tenant-friendly regulations, while Florida’s diverse economy and warm climate can attract retirees and tourists. Consider your goals, risk tolerance, and market conditions to make the right choice for you.
1 Like
Washington is a Blue State. This means more tenant rights, Possible rent control coming. It also means that building a new park is improbable, which makes an existing park more valuable now and in the future.
Washington is also Cold. Cold climate parks have some other issues. IE More Expensive new homes. Roof Load, freeze protection, etc.
Florida is a Red/Purple State. Which means more property owner rights. Low likelihood of rent control. They do have some exciting building codes. Setting up a new home gets expensive due to Hurricane/Flood risks.
I saw an MH built about 6’ off the Ground in Tampa this summer. It was a brand new home. I can only assume the building code required the house to be above the flood line. IDK what that cost, but I am sure it wasn’t cheap. It looked like they had to build a raised foundation with cinder blocks.
FL is also having some issues with Insurance.
If you stick with Frank’s formula of Interest Rate plus a 3% bump for the Cap rate, you will be fine in either State. Assuming you can find a deal that meets that criteria. The last lending quote I got was 7% (July 2023), so you’d need a 10% cap park to make it work.
Washington is a tenant friendly state.
Have three parks in Washington. We operate only in Eastern half of the state where city regulations are easier to work with and property values are a little less elevated. Rent control was defeated. Lots of out of state corporate investors buying up parks in the state. I get calls on every park every week asking us to sell. They don’t know where the parks are… they just want to make an offer. It is a blue state but less so in Eastern Washington. State has an Eviction Resolution Program that came to be as Covid eviction moratorium phased out. I personally like it as it simplifies the eviction ‘process’ and keeps the courts out of it until the very bitter end. Helps resolve things without the anger and frustration.
1 Like
I have a great project I am working on in Texas.
1st Phase is 30 ¼ ac lots, if your interested send me an email to Frank.Baumann@mac.com
I have an Investment Opportunity in Alaska