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Matthew Scott
  • Investor
  • Dallas, TX
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Mobile Home Park (pros and cons$

Matthew Scott
  • Investor
  • Dallas, TX
Posted Apr 21 2024, 06:55

Hello! I recently bought 3 acres of land with the intention of creating a mobile home park. If anyone has experience with this, could you please share your checklist for getting started? Additionally, I’d appreciate any insights into the pros and cons of embarking on this endeavor. Thanks in advance for your help!

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Jordan Moorhead
  • Real Estate Agent
  • Austin, TX
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Jordan Moorhead
  • Real Estate Agent
  • Austin, TX
Replied Apr 21 2024, 10:17

@Matthew Scott go check with the city and make sure you can do it before you invest any time and money into it. I've not heard of or seen many get built recently 

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Matthew Scott
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Matthew Scott
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  • Dallas, TX
Replied Apr 21 2024, 10:40

Thanks. In in a rural area. I have met with the city and it was approved. 

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Jordan Moorhead
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Jordan Moorhead
  • Real Estate Agent
  • Austin, TX
Replied Apr 22 2024, 08:10

@Matthew Scott have you tested for demand too?

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Logan M.
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Logan M.
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  • Investor
  • Provo, UT
Replied Apr 22 2024, 08:33

I don't want to come across as a Debbie Downer but I highly suggest especially if you're in Texas to find an existing park. Maybe you can trade your land for a park.

9/10 times the development of a park doesn't make sense. I have expanded one park but purchased 9 overall and I will tell you that you can get a much much better deal buying existing and scaling it.

New parks are extremely time-demanding and take a lot of capital.

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Rachel H.#2 Mobile Home Park Investing Contributor
  • San Antonio, TX
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Rachel H.#2 Mobile Home Park Investing Contributor
  • San Antonio, TX
Replied Apr 26 2024, 16:51

@Matthew Scott The first question would be to check the zoning. If the home is OK to be zoned for used mobile homes, you'd have to check on any restrictions (i.e. size, age, etc). 

From there, you'd have to figure out exactly the sizes of the homes you want to bring on the land and how far you want to space them out. The smaller the home, the harder it is to find a good, used home in decent condition (in general). 

Personally, I've known mobile home park owners with this challenge when trying to find smaller mobile homes to fill their lots. Another option is to fill the space with RVs. Though, you'd have to check to see if there is enough demand. 

If you need more guidance when it comes to moving the homes and what's involved, you may want to talk to a few local mobile home dealerships. In the past, I've found them to be good information for market insight and referrals. 

Before you spend any money, you just need to price everything out (i.e. cost of homes, moving costs, installation, hook ups such as electrical, water, etc). 

One last thing, if the land is not developed and does not have the proper infrastructure in place the project will be more costly. Usually, it's best if there is existing infrastructure in place when taking on this type of endeavor. 

Hope that helps!