Real Estate Investing Basics

Mobile Home Park Analysis

Expertise: Personal Development, Real Estate Investing Basics, Business Management, Mobile Homes, Real Estate News & Commentary, Landlording & Rental Properties, Mortgages & Creative Financing, Real Estate Marketing
224 Articles Written

If you are thinking about perusing an investing career in the wonderful arena of mobile home investing you are going to need to familiarize yourself with your local parks.  It is important to step back and maintain an ‘investors’ opinion.  (Notice I didn’t say unbiased opinion)

Want more articles like this?

Create an account today to get BiggerPocket's best blog articles delivered to your inbox

Sign up for free

Below is a list mental notes to take when learning about each mobile home park.

Grading System – Incorporate some kind of grading system into your mobile home park analysis.  While driving through or “Google Earthing” these parks rate each community with a lettered or number scale of your choosing.

Go Online – Go online and search for mobile home parks in your town.  Compare park fees, look at pictures, read reviews, even apply for a home online. Call the park manager to ask about homes for sale.

Crime rating – Ask yourself, “Would I walk through this community alone at night?”  Then ask yourself, “What type of mobile home buyers will I be attracting with a home in this park? Most of the bad mobile home stories that our friends love to share with us may be a result from a higher crime, higher poverty area of town.

Amenities – Amenities such as pools, tennis courts, shuffle board, club houses, etc  all cost money. These costs raise fees which lowers your bottom line. In my experience there is no substantial profit gain from purchasing a home inside a park with few amenities than there is with a home inside a park with a greater number of amenities. I have also never found the lack of amenities in a park to be a determining factor for a family moving into my vacant properties within parks or subdivisions if the mobile home itself is desirable.

Rentals Only – Does a certain mobile home park only rent the homes within its borders? Get out! There’s no money here if you cannot obtain possession to the mobile homes themselves.

Lot rent/HOA fees – These fees are almost always non-negotiable.  Check out fees and keep these numbers in mind when picking out your investments.

Investing since 2002, John started in real estate accidentally with a four-bedroom mobile home inside of a pre-existing mobile home park. Over the next 11 months, John added 10 more mobile homes to...
Read more
    Mark Wallstead
    Replied over 9 years ago
    Great Post, but if I may add; When using Google Maps/Earth I would also note the terrain surrounding the park and what is around it in a 2mi radius. I feel it is important to use your grading system, this is how I would do it: 1)The surrounding area’s terrain and landscape 2)Size of the Park Area commensurate with the price 3)Local economy and available jobs and financial opportunities 4)Price of your plot of land 5)Friendless of your neighbors 6)Activities for your children 7)Your gut feeling – Meaning how you feel inside about this park Rate each category on a 1-10 rating scale. Add all the number and divide by 7. The park with the highest rating is for you. Incorporate this rating system with all of your other categories John Fedro posted and you should have a nice home for yourself and family. I hope I could help, real estate is my life and passion. Happy hunting, and remember… Location, Location, Location!
    Sam Prakash from Castro Valley, California
    Replied over 3 years ago
    Are all MHP loans mostly non-confirming?