I enjoyed watching this video so much I thought I would forward this video and article concerning mobile homes and parks to our BP community. Finally some good news about our industry making headlines.
All the best,
I have been reading up on mobile home parks lately as a possible investment later this year for myself. Nothing concrete just thinking at this point.
My mom has a friend who owns a park over the last 40 years so they are experts at it. Husband passed away so it's just her now approaching her 80's in age.
I have had my commercial clients review some parks as well.
What the key points I have taken away is to have the park with all or mostly where I own the lots only. I have seen where owners say not to own the actual trailers because of the high ongoing maintenance. You tend to attract the transient tenants also who pay a few months and then have to evict. This versus the trailer owners who pay to have their trailer moved to your lot and hooked up. Those ( home owners ) tend to have an emotionally investment to their property and stay for years and years because it is very hard to move the trailer somewhere else. I have also read when analyzing the parks to look for single trailer owners and that the same corp or name owning multiple trailers there is bad. This is because the trailers are owned by an investor renting out the units versus a ( home owner ).
A trend recently is to offload water and sewer for the park directly to the tenants to reduce overhead for the park.
I like the idea of renting the land out and waiting for residential or commercial development to come along and buy out the park at a premium price many multiple over initial acquisition price. I wouldn't want to own a bunch of trailers as the turn rate would be faster than multifamily and I would have more headache. I hear about it all the time from my mom's friend. They typically collect rent on park owned trailers once a week for total monthly rent otherwise tenants blow the money on stupid stuff.
One of our clients also owns a number of MHPs around the country. I remember him telling me that one issue to pay close attention to was the size of the spaces and the access. Older parks often only have room for the older, smaller homes and can't accept larger modern homes. I don't remember the numbers off hand but even if an older park had large enough spaces the streets may not have enough room to maneuver new homes into place. I do remember him also saying that parks with older single-wides end up with a lot of abandoned homes because they cost more to move than they are worth. As @Joel Owens said you can rent them out but they're the MHP equivalent of a hotel with hourly rates.
That's a great video @John Fedro, thanks for sharing. Santa Fe, NM is just up the road from where I live. We have lived in and owned our double-wide MH for eleven years and we love it. We also own a SFH as a rental in Albuquerque but we bought the MH so we could put it on a nice large piece of land up in the high desert hills east of the city because we wanted the peace and quiet of the country. I'm just getting started in REI again after 13yrs since we bought the SFH and there seems to be pretty good opportunity in mobile homes here in NM.
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