Updated over 7 years ago on . Most recent reply
MHP with all homes owned by two investors
Has anyone owned a MHP when all the homes are owned by two other investors as rentals?
General info: 40 pads. 36 homes in place. 0 owned by park. 19 owned by investor A and 17 owned by investor B. Investors A and B deal with tenant issues, placement and MH repair and upkeep. MHP owner deals with park as he would if there were 36 home owners (water, general landscaping and infrastructure upkeep, taxes and insurance)
I have not heard much discussion on this model and I am curious if there are negatives/positive to it. There are discussions about being cautious when an investor owns multiple homes in a park but 100% seems a bit different.
Most Popular Reply
At the end of the day it all depends on the two owners. If they are savvy investors that have a good relationship with the park owner you'll most likely have a great investment. If they are slumlords, every day will be a new headache.
Those investor have tremendous say over the park's operation from both an income and expense perspective so I'd treat this more like a partnership than an owner occupant relationship.
If you and the two investors don't share the same principals, have a similar visions for the park, and your goals don't compliment each other's I'd stay away from this deal.