Single wide concern, etc

My husband and I somewhat stumbled on 4 MH parks for sale in our area. We were curious as to why there were so many for sale at once. Pop. approx. 30K. They are all in the county vs. city. The one we somewhat like seems like it’s priced accurately - $850K with 52 lots, 46 rented, single wides, could use some junk removal and storage bldgs. but not too bad for a MH park, current rent (supposedly was $295 and raised to $325 due to recently converted to new city water and sewer lines). I am a realtor so I am thinking that with foreclosures and home prices being so low, that people are just opting to purchase single family homes instead of paying for MH, lot rent, etc., etc.

Also, can you even purchase new single wides? From what I’ve read you can only purchase from one mfg (Clayton) but I presume you can get used ones…

We do have rental property + I have managed large apt. communities for several years and we have rehabbed various homes/apt. bldgs. so we are aware of mgmt. needs.

Just trying to gather information to see if a MH concept is a wise purchase during these economic times and beyond or will MH parks be phased out due to better, other options out there?

If your question is about purchasing single wide homes, there are several manufactures that produce them. One thing to watch for is you ‘zone’. The country is divided in ‘zones’ due to wind, snow load and other weather factors. So you need to make sure what ever you do buy, is rated for the ‘zone’ your located in. Also note- these zones can change inside a state! So do not just think all of Colorado, or Texas, or Florida or many other states remain the same throughout the state.

Using some basic formulas, the price is not bad (although I don’t have your specific information). As Jim has said, singlewides are still being manufactured, and are probably 99% of what we bring in to our parks (and we’ve got over 6,000 lots). In addition to Clayton, you should also check out Legacy and Fleetwood, which have programs that allow park owners to buy directly from the factory. If you are seriously looking at buying this park, I would suggest you buy our course called “30 Days of Diligence” so you don’t make any major errors – it’s the exact same methodology that we use on all our acquisitions. There are some aspects to mobile home parks that are not shared by other real estate types, such as such a major focus on water/sewer/gas/electric construction, etc.