Okay, total newbie here and ready to jump into mobile home parks in Florida.
Give me your best advice and warning signs to look for.
I’d like to do seller financing if possible but have cash for down payment too.
Check out Ekaterina Stepanova's MHP Tribe, great group specifically tailored to Mobile Home Park investors with a lot of knowledge available.
Listen to podcast number 111. It's an older one, but one of the first they did on mobile homes so it's pretty interesting. The guest tells about a deal he did with 100% owner financing too.
Location is so important, make sure the property you get comes with the land too. You can make money in the mobile home flipping business too. Sometimes though, for most Florida mobile home lots you may have to be 55+.
@Amber Hagen , Welcome to BiggerPockets!
If you have not, great books to read are:
* The New Investor's Guide to Owning a Mobile Home Park: Step by Step Instructions to Acquire and Manage a Profitable Trailer Park
*Mobile Home Wealth: How to Make Money Buying, Selling, and Renting Mobile Homes
*How to Invest in a Mobile Home Park: For Business, Money, and Profit
*Deals on Wheels and Making Money with Mobile Homes
*10 Other Real Estate Investments You Could Do
Goodluck and make it happen!
Well our team lead @Matt 'Roar' Gardner just closed on a RV/Mobile Home park in the northwest Florida area. He probably has some really fresh insights. Are you living in Florida or out of state?
@Amber Hagen . You’ve picked my favorite asset class! But you can easily get burned in this arena. I would start with significant training and mentoring first, which will include the books above, the podcast above, and more. You may want to consider going to the Frank Rolfe Mobile Home Park Academy. I did their three day course years ago and it really helped me move down the road quickly. Now my firm has invested tens of millions in mobile home parks from a variety of operators. Happy investing!
We just started investing in Mobile Home parks. We have purchase three parks in 2020 and 2021 with a total of 73 lots.
My first recommendation is strong due diligence before purchasing.
Focus on zoning, water and sewer issues.
It is critical to have a clear understanding of the sewer/septic and water source/conditions. In our area, family owned parks are great buys but have most likely taken many short cuts to resolve sewer/septic and water issues.
If the park is on city water and a single meter, check the water bills for the last 18mths. Solving a leaking water issue can be costly. We calculate the average water usage per home to insure no leaks.
If the park is on septic systems, I recommend pumping every tank and having them inspected. If they have not been pumped in the last 5years, request the seller to pay for 1/2 the pump and inspection cost. Also, make sure the previous owners provides a connection Map. If the septic system and homes are not sized to current code, you could have issues if a drain filed or tank goes bad. In one park we purchased, some of the tanks had not been pumped in 20 years.
Also, check the zoning and make sure you can fill empty lots. In some counties, they have rezoned or changed zoning that could limit your ability to fill the park. In a recent due diligence, I found that one park was rezoned General Business and the previous owner never contested the re-zoning. Therefore, the new owner could not fill lots if a lot was empty for two years.
Check flood plains and other city planning records. We found one park in TN was in a 100 year flood plane and was not allowed to replace homes. In other words, if someone moved a home it could not be replaced.
Thank you Great info