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Hi everyone. I am new to the site here and needed to get some thoughts and opinions on leasing a mobile home park. I have been researching flipping mobile homes, renting them, and also owner financing them. I've read a lot about the Lonnie Deals and that has kind of been the strategy I have planned to execute.
However, I stumbled upon a guy on Craig's List who wants to lease his 6.2 acre mobile home park. It currently has about 60 lots but is completely empty save for one loan tenant( why this person is still there IDK). It use to be about half full but due to not being properly managed a lot of drug activity began to come in and out of the park. So instead of just picking and choosing who got to stay and go, the owner evicted everyone and removed all the trailers.
That was a few years ago and now the park owner has decided he wants to lease the property. He's not too keen on the idea of making it another park but would if the right person came along. I told him about my park management ideas and seems to be coming around on the idea.
I think this could be very lucrative for both the park owner and myself. I would basically run the park(at least till I establish a sort of park manager to live at the park and oversee things in my stead) and bring in qualified tenants. I plan to rent lots, rent mobile homes, and or sale and owner finance the mobile homes. I have limited start up money but I already have 2 mobile homes that I can place in the park to get the ball rolling. I figure I'll mostly concentrate on renting lots just to get some cash flowing in ASAP and then focus on renting and selling mobile homes.
I am supposed to meet him this Thursday(8/6/2015) and discuss some numbers. And that's really where I need the HELP! When I first met up with him he said we could make the lease amount a set number or make the lease based off of how many mobile homes are in the park. He mentioned a tier leasing of some sort as well. Basically I would have a set amount of time to get X amount of mobile homes in and the numbers goes up in 6 month increments. I really don't know what my best option would be here as far as negotiting the lease price. Do I say I'll just pay X amount a month or should I go for the "per MH" route? The average lot rent in that area is $165 I believe. With some changes to the landscape I think I could charge $200 a month. I know those are not high numbers but lots in the state of WV don't rent out for much. The lot rent alone won't make me a bunch of cash(though 60 lots x $200 a month isn't anything to shake a stick at) but once I start renting or selling mobile homes it could bring in some cash.
So what are your thoughts experts? How much should I expect to lease this place for? What sort of questions should I ask him? I'm new to this and have not been able to find anything on the web about leasing an entire mobile home park. Sorry for the book, and I look forward to meeting you all and getting some feedback!!!
@Dave Tucker I'd start out with a lease agreement that lets you lease it for free for a couple of years or until you get a specific number of homes in the park and have income coming in. I think you are going to find that it will be hard to get people to move their homes into the park so you will have to buy homes and move them in yourself. This is going to cost you a lot of money.
There's a lot of moving parts to this business and it sounds like you have the motivation to make it work but you need to get the education as well so you can succeed. Have you gone to any classes on this niche or read any books about it. You could be stepping into a landmine or a goldmine.
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