Hello! We’re planning on buying our first investment property and giving mobile home parks a look (vs single family or multi-family options). We have capital but prefer to use OPM as much as possible. Willing to invest pretty much anywhere. And we’d like something with a solid return and that can be managed for us (ie property management company). We’re super new - and eager - but trying to figure out our real estate investing path. Thoughts on mobile home investing? All honest, constructive thoughts are appreciated. Thank you!
Here are the top ten reasons why mobile home parks are great:1) It’s affordable housing – and that’s what’s in demand with the U.S. economy in decline.2) It costs $5,000 to move a mobile home, so the customers can never leave.3) You rent land, so you don’t have to deal with repair items like fixing toilets.4) You can buy directly from the original mom and pop builders from the 1960’s, 1970’s and 1980’s, so you can get low prices and often real steals.5) The availability of seller financing, due to this same fact.6) The availability of bank and conduit debt – banks love parks because they have the lowest default rate of any real estate type in the U.S.7) Industry is anchored by two superstars: Warren Buffet is the largest owner of mobile home manufacturing and financing in the U.S. and Sam Zell is the largest owner of parks.8) There are no new parks being built in the U.S. – cities won’t allow new ones.9) You can still find plenty of deals at 10%+ cap rates.10) Mobile home parks are on the right side of every U.S. megatrend from retirement (10,000 baby boomers per day into $1,200 per month social security checks), employment (over 50% of all jobs created since 2008 are minimum wage), declining U.S. economy (50% of all Americans are on some type of social subsidy and need affordable housing), competition (Class B and Class C apartments are falling apart, while Class A rents average $1,100 per month and SF median in U.S. is $170,000).It’s hard not to be bullish on mobile home parks, unless you believe that rampant prosperity is right around the corner.
You’re in the right place! Fortunately you found this site before you found your first park. I just drove by a low end 8 plex today and thought to myself, " I can buy a park for the same price as that dump. lol ". The people and information here can exponentially shorten your learning curve.
Here is something different from those other niches, it’s my understanding that it could easily cost $10-15k in misc costs just to buy a park. That’s not down payment.
Have fun. It’s a blast.
I appreciate the input!
I’m sure each situation is different but are MHP’s something I could use with a property management service? I’d assume the answer is “yes”? We’re not super keen on directly organizing maintenance, rent collection, etc.
Also MHP’s see like an attractive investment opportunity… Where’s a good place to start? The upcoming Vegas training seems comprehensive. We’re looking for something that will train us well so we can turnaround and start investing. Thoughts?
Vegas would answer a lot of questions
This is one time that Vegas is not about gambling, but rather risk hedging. You will learn how to correctly identify, evaluate, negotiate, perform due diligence on, re-negotiate, finance, turn-around and operate mobile home parks for three days from 9 am to 9 pm. There’s no way that I would buy a park without getting that information.
Adjocab, definitely go to Frank’s MHP Bootcamp first before placing an offer on any MHP.My Husband and I own 2 MHPs.We attended Frank’s MHP Bootcamp and loved it. We gained a lot of knowledge.In addition I would recommend becoming familiar with Zoning Laws. The Zoning Laws vary per City or County, but they are very important.Just because a parcel of land has more than one mobile home on it does not necessarily make it a Legally Zoned Mobile Home Park.My Husband met a gentleman who purchased a parcel of land with some Mobile Homes and the Zoning was NOT Mobile Home Park. Thus, he is now left with a parcel of land that he cannot place Mobile Homes on.We wish you the very best!
Just attended Boot Camp in Orlando. Very informative! Wish I had done it years ago!! Get that under your belt before you buy anything!!
Because I attended a Boot Camp, I am now in a position to finance other investors’ MHPs.Without that advice – it would be a sure-fire mistake to buy a park.You just don’t know what you don’t know!Thanks again, Frank.