Mobile Home Park Investing Questions

11 Replies

Hi, I'm new to BP and have not yet had the time for a formal intro but I've been around a bit and read/learning alot from this great community! An opportunity has come up and it is on somewhat of a time crunch so I have a few questions. As well, I'm new to the MHP idea of investing...

1-how or what is the typical way to own a MHP (I'm in Canada)? Is is ok/normal to own personally, or would it be wise to own using a holding company?

2-how much does MHP manager cost? The numbers i have been given i believe exclude this and I'm wondering what costs are involved in this position?

The given expense ratio is about 30% and the cap rate is 13%ish. 

Thank you for taking the time to read and respond.

Curtis 

Curtis,

you would probably own it with an LLC here in the states at least. A manager runs 10 - 15 per space, plus comped space rent, maybe a house and some utilities. If there is a lot to do, maybe more. Depends ont he size of the park that that figure should get you close.

Hi Curtis!

Check out the podcast that was just recorded on this very subject. It is very informative on what to look for in a MHP.

Best of luck to you!

Gina

@Curtis H.  Here's the link, by the way to the podcast mentioned earlier. And welcome to BP!

Thank you for your feedback! And yes, I had already listened to the podcast. It was very insightful!

I'm the MHP Podcast guy.  Glad you found it insightful.  : )

Education is critical in real estate.  I'd suggest you:

1. Attend the MobileHomeUniversity.com Bootcamps.  Tell Brandon and Frank I sent you.

2. Attend a seminar by Pete Fortunato and Dyches Boddiford.  They teach together a few times a year.

A weekend both places will teach you everything you need to know about both MHPs and asset protection.  You must know both.  Neither of the above seminars teaches what the other does, so you really need to attend both.

To your continued success,

-Jefferson-

Thank you @Jefferson Lilly.

I really enjoyed listening to your podcast. I found it quite insightful. I look forward to learning more.

Curtis

Great podcast. I think I've been a member of his linked in forum for quite awhile but never really been too active on it. I'm going to start paying a little more attention now.

Jefferson:

I am looking at becoming an investor in this area. I listened to the podcast you were featured in and you mentioned something on the podcast about private septic and well being a deal breaker for you. Can you elaborate? I've got a potential opportunity, but it involves both of these (however each of them have recently been updated). Otherwise, it could prove to be a fair deal. Thanks for making yourself available as a strong expert on the topic

@Curtis H.
Hi! I was just wondering how your deal turned out? Was it a MHP in the US that you were investing in from Canada?

I've been looking into MH's as a strategy, and I'm trying to figure out if Canadians can do it easily, either in Canada (MH's and MHP's in Canada) or in the US as a Canadian. Feedback on your experience and what you found out would be of great help! Cheers

Originally posted by @Erich HD Schmitt :

@Curtis Hart
Hi! I was just wondering how your deal turned out? Was it a MHP in the US that you were investing in from Canada?

I've been looking into MH's as a strategy, and I'm trying to figure out if Canadians can do it easily, either in Canada (MH's and MHP's in Canada) or in the US as a Canadian. Feedback on your experience and what you found out would be of great help! Cheers

Hey, 

Unfortunately I didn't go through with the deal. There were too many variables in the deal. It was a park in Canada. 

I own a mobile home in another province and rent it out. It's not bad but you have to watch for the park fees as they can eat your margin. As well, a trailer is a trailer and there is constant maintenance and repair required to keep it up.

Curtis

Join the Largest Real Estate Investing Community

Basic membership is free, forever.