I am evaluating a deal for my first MH park. It is small, just a dozen spaces. I have experience with buying and selling mobile homes, as well as single-family residence landlording.
Can someone recommend a manual that gives tips on how to manage a small park for a new owner? I am sure that a lot of it will be second nature, but at the same time there will be some unique aspects that I don't want to miss.
Hi Kevin, Nice to hear and best of luck. But you really haven't read any threads here.
New folks usually over value a park using park owned home rent as income. Just use prevailing lot rent and 30% expense ratio + nominal valuation on the homes. Round numbers: 12 x $200/mo lot rent x 12 months x 0.7 (30% expense ratio)/0.1 (10% cap rate) + 12 x $2k nominal value for old homes = 225k offer price.
mobilehomeuniversity.com has both due dilligence kits and park management kits. They at least mentioned they did park manager training when I was at their boot camp. Check their website.
Park management of a park with all park owned homes, starts with rapid conversion to a rent credit system (search here and on MHU) where the occupants are headed toward owning the homes and eventually will just be paying lot rent. Then you can fire yourself because the park won't need management, just a bird dog who'll call you when something happens.
It depends on what kind of information you are looking for. Frank Rolfe and Dave Reynolds have a whole system for purchasing 1-3 star parks with additional information about running the parks once purchased. Michael Powers has a strong system for running parks.
Either one could help you but neither is free.
George Allen puts out a whole lot of free material for park owners. You just have to call him and ask. He also publishes two newsletters each month, one less expensive that many smaller operators subscribe to, and one more expensive but also very comprehensive that the larger community groups favor.
Thank you so much for the info, I appreciate it!
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