has anyone here invested in mobile home parks? i'm new to real estate investing and have heard that there is amazing cashflow in MH parks with very little maintenence since most of the tenants are owners or tenant buyers. any help would be great, thanks!
I haven't seen ANYTHING that has amazing cashflow. In fact, I have been looking for a mobile home park for over a year and haven't found one that will cash flow properly yet. Additionally, tenant-buyers are really tenants. Typically, tenant-buyers are as flaky and unpredictable as any other tenant and usually don't buy the property.
I have a friend who does own a mobile home park. She was just notified by the EPA that her sewage system must be replaced. The price tag is $150,000!!! OUCH! It's not all glamour and piles of cash!
I have close friends who builds a relationship with mobile home park owners. Here's how their deals go: When someone abandons a mobile, the managers call my friend and ask if he wants to buy, rehab, $ resell it. He usually pays a small amount, between $2k and $4k. He rehabs, rents to own for five years netting ridiculous profits.