Help Evaluating an MHP park w/13 RV LOTS

[Nichole Menzies]

I am evaluating a 40 Mhp park of which 13 of the lots were converted to RV pads and have RV owners on them. Not sure why the owner converted them to RVs but.....is it very expensive to convert them back to a trailer pad lot? What.does it entail? do you think I shud just leave the RV pads as they are? Please advise...

[Account Closed]

Usually when that happens, they just installed a plug so the RV can hook up.  If this is the case, then there is no cost/work to convert.  Just ask the seller if a mobile home can still occupy these lots or just go out there and check the boxes yourself.  This should actually be viewed as an advantage as you can have either a mobile home or an RV on that lot.  The owner did this because it is cheaper and easier to add an RV plug than it is to buy a home to fill a lot.

If the RV's currently occupying those lots are skirted (or otherwise obviously permanent), then I would treat it exactly like a lot renter in your evaluation.  If not, you'll need to give a discount on those spaces based on the anticipated rent the lot will generate through the year.  Usually the rent roll and P&Ls will clue you in to how permanent those RV's are or how often they are occupied.