I’ve been considering purchasing a small MHP for a while now, but I’m concerned that my physical distance will be a negative factor that will open me up to all sorts of vulnerabilities.
I live in New York City, and I’ve read that New York as a state is unfavorable due the courts generally strong pro-tenant attitudes (this is definitely true for NYC), and MHPs for sale in the surrounding states seem few and far between, and the ones that do pop up are often out of my price range.
I’m looking mostly in the $150k price range and lower, and I’ve come across a few that look good on paper. They’re generally under 20 spaces, high occupancy, all tenant owned homes (that’s one absolute requirement that I have), and one even has all the units sub metered.
The problem is that these are located mostly in the Midwest, often 1,000 or more miles from me. Due to the costs and time involved with making a trip out there, I’d like to make no more than one visit in person during the purchase process.
Once acquired, since there are no POHs, I imagine the day to day management and upkeep would be fairly minimal, but I’m not sure that’s enough. I imagine scenarios like a problem rule breaking tenant that winds up requiring an eviction or something else requiring me to go through the court process, which could be difficult if I’m having to make trips in person.
I suppose I could hire one of the residents as a manager to take care of the upkeep of the common areas and rule enforcement, but unless the current owner is already using one they can recommend, I wouldn’t know how to choose one.
I’m aware there are management companies that will take care of a lot of the hassle for me, but I’m not sure I’d be worth their time given how small the parks I’m looking at are, or if they’d be worth their fees, considering they’re basically only managing a small common area and some concrete slabs.
Anyway, I’d appreciate any input or personal experiences you guys have in this matter!