Potential MHP Purchase in Blytheville, Arkansas

Mobile Home Park Investing
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Potential MHP Purchase in Blytheville, Arkansas

Denzell Hoover
Investor · Austin, TX · Member since 2017 · 10 posts · 5 votes

Fellow investors,

Looking to purchase my first MHP in Blytheville, Arkansas.  Besides calling other property managements companies/landlords for the rent rates and occupancy rates in the area. You guys have any other recommendations on how to get this data? I mainly do  wholesaling so this is a different ball game and process for me. Any tips or advice would be greatly appreciated!

info about the property

19% Cap Rate 

35 out of 75 are occupied

150 to 175 rent per month

Purchase price is 250K for 75 spaces.

Thanks in advance for whatever guidance and info you all could share.

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Marc Biviano
Marshfield, MA · Member since 2015 · 15 posts · 8 votes
8y
Do you know if the water and septic are public or private? I would keep calling around to other parks saying your looking for a home for your grandmother until someone calls you back. Maybe hire a property manager or someone off of Craigslist to travel to the park to ask around. Check out the county on bestplaces.net to see about the location. @kevinbupp has a podcast on Mobile Home Park Investing on this subject.
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  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    8y

    I'd want to know why the occupancy is so low. Maybe they are just running it poorly?

    I'm looking for a MHP too so if you come across any others let me know!

    [email protected]512-888-9122
    The Moorhead Team5140 Reviews
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  • Marc Biviano
    Marshfield, MA · Member since 2015 · 15 posts · 8 votes
    8y
    Do you know if the water and septic are public or private? I would keep calling around to other parks saying your looking for a home for your grandmother until someone calls you back. Maybe hire a property manager or someone off of Craigslist to travel to the park to ask around. Check out the county on bestplaces.net to see about the location. @kevinbupp has a podcast on Mobile Home Park Investing on this subject.
    1Reply
  • Denzell Hoover
    OP
    Investor · Austin, TX · Member since 2017 · 10 posts · 5 votes
    8y

    @Jordan Moorhead

    I will keep you posted

    @Marc Biviano

    Thanks for those references I will look into them. Talked to some local managers already and I'm not go through with the purchase.

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  • Tyson Cross
    Investor · Portland, OR · Member since 2013 · 133 posts · 88 votes
    8y

    @Denzell Hoover That's a good move. I hadn't read all the way down before I was going to ask you to think twice. Here's a couple things: Next time, a good way to get rent comps is to pretend you are an appraiser doing an appraisal for a park in a nearby town/city. Call owners around the area, say you are with some RE company doing an appraisal and you need to get some information. Generally, most owners will offer up information if they think you're doing an appraisal. Second, there are some red flags with this deal and I'm not sure how much market diligence you do, but the first thing I always do no matter what is look at the market. Go to bestplaces.net or citydata.com and you can type in Blytheville, AR. From there you can look at the demographics for the town, county and even metro. AR is typically a soft market state, Bytheville especially so. Once on the site you're going to look at population growth (positive or negative), unemployment rate, home price and some other things. Anyway, good pass on this deal, probably would be tough to operate anyway. If you guys want, I'm starting a podcast called "MH Parkster Podcast" Check it out! Good luck

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  • Rachel H.
    San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
    8y

    @Denzell Hoover Check the park's infrastructure. Inquire about any past maintenance done. Ask to see invoices on work done to the property. Talk to the contractors who did the work if you can. They'll usually know the story about the park and any future work you may need to do. Always a good idea to prepare yourself to do any deferred maintenance. Good luck! 

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  • Denzell Hoover
    OP
    Investor · Austin, TX · Member since 2017 · 10 posts · 5 votes
    8y

    @Rachel H.

    We did further research and talked to other property managers in the area. Most of them told me to run from that deal! Unless I want to deal with a lot of bs.

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