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Mobile Home Park Investing

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Scott Haubrich
  • Real Estate Broker
  • Minneapolis
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Mobile Home Park Infill

Scott Haubrich
  • Real Estate Broker
  • Minneapolis
Posted Nov 14 2022, 13:02

Hello, 

I recently purchased my first mobile home park and I am looking for some ideas on where to purchase homes to infill the vacant lots.  Anyone have some good resources for used trailers & places to advertise to attract tenants with their own homes looking for a place to call home?


Thank you

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Mario Dattilo
  • Investor
  • Naples, FL
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Mario Dattilo
  • Investor
  • Naples, FL
Replied Nov 14 2022, 13:43

You can advertise for organic move-ins where people bring their own home in but that is pretty rare and only happens in certain high demand markets. 

Craigslist and Fb marketplace are where we have found used homes. We have also teamed up with some Mh wholesalers to source used homes to move into our communities. 

Plan to buy homes, bring them in, and set them up to sell. 

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Will Stewart
  • Investor
  • MA
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Will Stewart
  • Investor
  • MA
Replied Nov 15 2022, 03:36

We’ve had luck with organic infill in precisely one park, where local home prices were $500k+ and median income is $94k. We have another park where the numbers are about 15% lower than that and we would have trouble with organic infill. Just two random data points to support what @Mario Dattilo said. Most parks you need to buy, set up, and sell. 

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Daniel Freeman
Pro Member
  • New to Real Estate
  • Honolulu
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Daniel Freeman
Pro Member
  • New to Real Estate
  • Honolulu
Replied Nov 15 2022, 11:55

@Scott Haubrich @Mario Dattilo @Will Stewart

Thanks for the knowledge so far. Would one of you mind why you would infill to sell rather than to rent? Thanks!

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Scott Haubrich
  • Real Estate Broker
  • Minneapolis
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Scott Haubrich
  • Real Estate Broker
  • Minneapolis
Replied Nov 15 2022, 12:03

I'm planning to rent the lots, however in my market I think I will need to infill the empty lots with mobile homes and them sell them on contract for deed to people looking to live at this location.

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Nathan H.
  • Real Estate Agent
  • Fort Collins, CO
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Nathan H.
  • Real Estate Agent
  • Fort Collins, CO
Replied Nov 16 2022, 06:02

I'd say the right option depends on your market. Primarily, what local codes will allow you to bring in. Most common is 1976 or newer, but there are a lot of municipalities that are much more harsh. I can't speak to your market, but where my MHP is located (Casper, WY), it was insanely easy to sell a fixed up mobile home. There is a massive shortage of quality labor, therefore the town is full of run down rentals and any affordable product that meets the standards of being clean and safe is in huge demand. My strategy was make the lot rent+CFD payment equal about what market rent would be. FB marketplace was the most productive. As far as finding mobile homes to bring in, I'd bird-dog craigslist, FB market place and call some of the larger parks in your area to see if they have anything for sale. Keep in mind, infill is very expense these days. If you can't sell your MH's for a minimum of $25,000, and buy around $10,000 it's difficult to break even. However, if your main goal is occupancy, it may be ok to lose some money on the sale. I also know an operator that had luck with paying the moving and set up costs (about $7,000 in my market) for people to bring their MH's to his park.I hope this helps.

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Jack Martin#3 Mobile Home Park Investing Contributor
  • Specialist
  • Scottsdale, AZ
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Jack Martin#3 Mobile Home Park Investing Contributor
  • Specialist
  • Scottsdale, AZ
Replied Nov 16 2022, 13:26

@Scott Haubrich there are various ways to fill empty lots, each strategy requiring different amounts of time. Here are some of the ways we have explored, from least amount of effort to the most:

  • Advertise free lot rent for a year if they bring their own home into the park
  • Work with the local new home dealers and offer them an incentive to sell you their used trade-ins
  • Work with MH sales people who specialize in the sale of MH only (many times they will be dealers as well, but focused only on used homes)
  • Network with MH movers who often know of used homes that could be available
  • Network with wholesalers who flip MH (be aware of homes in parks with this, as most often the park will have first right of refusal and you cannot remove it from the park. Also, it is important to note that you should be respectful of other owners. Do onto others....)
  • Sheriff sales, REOs or foreclosures of MH on individual parcels of land
  • Hunt Craigslist and social platforms

In all cases, the homes will have to be moved and set up, so you will want to build those relationships as well.

All the best,

Jack

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Cory H.
  • Boise, ID
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Cory H.
  • Boise, ID
Replied Nov 22 2022, 10:55

One other idea--this is how we got our last organic move in--is to look at the news or ask your MHA for information on any parks that are closing soon.  You might be able to help someone who has nowhere else to move their home, AND fill a lot with a new resident.  I love win-wins!