Best Strategy for a lot w/ three pads on it?

Question

I have the opportunity to purchase a quarter-acre mobile home lot with three pads and septic already built on it for $30,000 (state of repair currently unknown). Arizona mobile home park investors in Phoenix, Mesa, Tempe, Gilbert, Queen Creek, or Apache Junction, I'm interested to hear your thoughts-- does having the three pads, as opposed to one, offer any advantage, or would I better off simply placing one new home on the lot and selling it?

Scott Scharl · Answer

Thanks for your thoughts, all.

Rachel H. · Answer

@Scott Scharl Definitely check with zoning to see if this set up is acceptable and up to code. Good luck!

Garrick Oconnell · Answer

Where is the lot located and what is the average rent I may be interested in it or if you have more questions let me know. I manage 3 manufactured homes that we rent out after we sold the 4th for a good profit in flagstaff. These homes are all new 2016 builds that we placed and located in a community similar to a town home community since most are owner occupants and maintain standards very well.

Jack Fletcher · Answer

you might also look into if permitted by county using it as a lease to snow birds as the average monthly price for a place to park is currently 500 or more plus electricity  as long as it has a good appeal and infrastructure  food for thought

30 k is a small investment for a chunk of good land

Ken Rishel · Answer

The only way I can see that working if your home was one of the three and either you or a family member could handle any of the issues that might come up. There would be some important tax advantages and some (small) extra income.

I have an acquaintance who has an area with six mobile homes (just under the limit to require park licensure) in a rural area. He lives in one, sold as owner occupied the other five, and rents the land and services to them much like a conventional park. He tells me he clears about $1,000.00 per month after all expenses, and is able to write off all of his residential expenses including power, gas, water, telephone and internet as well. He estimates that to be worth about $1,500.00 per month in net gain as well.

Nothing wrong with small if you know what you are doing and it fits your skill set.

Thomas S. · Answer

There is no money to be made on a park that small unless you own and rent the homes. In that case you can turn a small profit but will own a depreciating value liability. More work and trouble than it is worth in my opinion due to the fact that the majority of tenants renting mobile homes are at or near the bottom of the tenant pool.

Best Strategy for a lot w/ three pads on it?

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