Mobile Home Park Analysis
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)
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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.