States to Avoid for MHP Investing?

Question

I'm looking for mobile home parks within three hours of the KC metro area. Through the BP forums, I learned that in Illinois it might be a big pain in the rear to evict a tenant who owns their own home. (It was said I'd have to move their mobile home, at my cost.)

Does anyone have opinions on owning MHPs in the midwest? (Specifically looking at Missouri, Kansas, Arkansas, Oklahoma, Nebraska, Iowa...) Are there any states with less-than-desirable traits/state laws/tenant rules?

Deborah Burian · Answer

Here in Oklahoma, some investor friends have had quite a bit of trouble with the Department of Environmental Quality on lagoons and water wells. Parks are often on the outskirts of the city, buyer beware.

Rachel H. · Answer

I know of several investors who own in those states. The key is to know the laws and who to contact when you need help. Good luck!

Andriy Boychuk · Answer

"Are there any states with less-than-desirable traits/state laws/tenant rules?"
@Laura H. I asked the similar question 2 years ago on MHU forum. People told me to avoid NY and CA because those are tenant friendly state and both have rent control.

My personal take is if the deal makes financial sense so the "Margin Of Safety" is big enough, I will invest in any state.

Scott Steffek · Answer

Laura,

I can't speak about moving a mobile home, but I do know that in Illinois, it can take forever to evict a tenant. It is definitely a tenant friendly state. I've heard of evictions taking over a year, if the tenant knows how to work the system. Here in Indiana, you can boot their butts out in 30 days or less. Best of luck to you.

Account Closed · Answer

@Laura H.

Each state has its own laws, some ups some down.  Some might be more favorable to tenants while others to landlords.  Don't pull at your emphasis on the state but have it be a component of the whole algorithm to evaluate a deal.  You might find a state thats reasonable  but the deal is perfect, the upside is there, and the market seems decent.  So i think it is for a sure an important factor, but not the sole factor.

States to Avoid for MHP Investing?

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