Mobile Home Park / RV Park - Offer & Value
Hey everyone!
I am in the negation process of two mobile home parks (of some sort). I found an older couple looking to retire and are willing to owner finance these properties. These properties are located barely outside of Houston, Tx in a rapidly growing area with tons of construction. All of the nearby parks seem to be a combination of RVs, Park owned mobile homes, and mobile homes owned by the tenant renting the lot. Every park I stopped by was either full or near capacity. Both of these properties are in Montgomery county- I called the county and they told me they basically didn’t have building codes there & only cared if it was on septic? I am new to this and learning. The owners have been sick and want to sell. They were listed with a realtor for a combined 1M last year but did not sell.
Property 1-
This property is 2 acres has 4 homes. (All park owned). There is 1 mobile home and 3 smaller pier and beam homes. Gross rent is $4200 a month. The owner pays utilities. This property is on a septic system. The owner claims they spent a lot of money on the septic and it was rated for 10+ homes. There is 1 RV hookup that is not being used. If I purchased this property I would add 5-6 MHs / RVs to the property (not sure which one yet.)
Property 2-
This property is 3 acres. There is 3 Siding / “tiny homes”, 3 mobile homes, and 5 RV spots. Currently the gross rent is 4500- 3 RV spots are vacant and two tiny homes are vacant. The tiny homes are 1 year old- the owner never finished them out. There is a large mobile home / RV park 100 yards away and it’s 100% occupied. If I bought this property I would rent out the 3 vacant tiny homes, rent finish & rent the two tiny homes, add 5 mobile homes and 10-15 RV spots. (This is my current plan- open to ideas). This park is on city water and sewer.
Offer / price
700,000 @ 5% for 20 years w/ 50k down. I started around 600k but I think I’ll have to go to 700K to get it. (The low down payment is really the only reason I’m considering this). I think both of these properties will be increasing in value in the next 5-10 years a lot because of their location.
Thoughts/ Concerns/ Questions-
1. Both properties do not show multiple units on the tax roll. Will this be an issue now or moving forward? I don’t know how they can possibly own a property for a couple decades and no one notice they don’t pay taxes on the other houses, but it’s crazy.
2. Should I mix RVs & MHs? Adding RV spaces to rent seems like a cheap way to grow the rent quickly.
3. How much $$ do you budget for utilities per lot (rough guess)
4. Should I be concerned about the lack of building codes and current properties? Any tips for adding building to properties located in these type of areas?
5. What do y’all think is the most cost effective way to increase the income on these properties?
Thanks in advance!!