We understand that if all of us had our way, we would love to find only parks that have city water and sewer, that is paid for by the park to be able to bill back. Unfortunately/Fortunately, we can find parks that might be worth taking the risk if we can buy them at the right price. Anyways, we are currently looking at a park that has city water and a treatment plant. We feel that this could be one of those opportunities, if we can buy it right. After the boot camp we shy away from anything that isn’t city water city sewer but feel that something is here, we thought we could get some great feedback through this forum.Anyways, can someone describe the risks of both and/or which one they would prefer. A
We own treatment plants, and they work fine. However, you have to make sure to do great diligence on the current condition and life expectancy, and also budget for the eventual replacement (think $500,000+ in most cases).And just for clarification, a treatment plant takes the sewage in one end, and it comes out 98% pure at the other end. This is not a lagoon, in which the sewage sits in a pond and the liquids evaporate. There are some unscrupulous brokers who are now claiming that lagoons are treatment plants. They are not. They are just a hole in the ground, that is lined in plastic
Frank…I am just starting to read everything that I can about MHP investing. Came across this thread and had a couple of quick questions with you. Do you own any parks that use a lagoon system and if so, what are some of the problems that can arise with these? I see some parks use lagoons and also use private wells. Any thoughts greatly appreciated. Thanks!
Avoid lagoons unless you can connect to city sewer at your option. Of all the private sewer systems (packaging plant, septic, lagoon), it is the one that is universally hated by all states and will one day become extinct. We have both packaging plants and septic, and while we prefer city sewer, these systems are here to stay with little push-back from municipal government. But we believe that lagoons will ultimately be legislated out of existence – it’s just a matter of time.Water wells are less attractive to us than city water, but they work and are a fixture of much of America. Make sure that you have enough in your budget to fix wells when they go bad, as it happens.
Thank you Frank! I greatly appreciate the insight. Now onto ordering the home study course and taking it from there. Thanks also for a fantastic resource.