Assuming you are not responsible for the home maintenance the majority of communities expenses will run in the range of 30%. This is somewhat higher for smaller communities as many expenses are consistent regardless of size. You will have tree trimming/removal, water and road systems maintenance, common areas and the usual evictions. You may also get some homes back and will have to reno to resell.
as far as getting homes into the park for cheap, try contacting some of the other parks in your area and see if the owners have any vacant homes they are willing to part ways with. You mentioned MH dealers, craigslist maybe a mh wholesaler like a car dealer that may have a few of them laying around.
How many spaces is the park zoned for? Can you add more pads down the road once you get the first set stabilized?
I have had luck obtaining homes from a higher-end mobile home community in my area. They even gave me one for “free”! Budget at least $2000-3000 for moving and set up of the home and at least $4000-5000 for rehab depending on the condition of the home. Add on another $2000+ for HVAC. And hook ups to electrical, water, sewer, that will be at least $1000, probably more if you have to repair water leaks or update wiring. Also, costs for steps and skirting and permits So, maybe a budget of $10-15k for a rehab? You can also buy new homes from Legacy and they will finance them for you. Their 3/2’s run around $28-30k and come with all appliances, including HVAC, it could be worth looking at their program.
@Miles Wicker , if your plan is to make parks whole again, I would highly recommend looking into the CASH program through 21st mortgage. We had to fill 15 lots and opted for new homes fast, vs old renovated slower option. The price was good after jumping through all the hoops! After we did one park, it makes us want to do others. Now we know the drill and can plan ahead better. The park we recently filled was purchased full, so it was a bad situation that needed a fast solution.
@Miles Wicker the reason why the expense ratio seems way off is because you are including the finances payments for the homes. Separate the lot rent and the home payment and keep those in separate buckets. Use the lot rent to calculate gross income and you will find the expense ratio makes more sense.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing