Mobile Home Park Flip - May have bit off more than I could chew.
Long time lurker, first time poster.
Park is 20 Units, all but 2 are park owned.
Paid 215,000
The PLAN was rehab units, fill occupancy and sell the park when it was stable for around the 4-500 mark.
Fully rented the park should bring in 8-9k per month, and about 500 in monthly expenses.
Once we closed on the park the "Zero delinquent" tenants all of a sudden stopped paying and some haven't been paying for many, many months. Turns out there's a lot of drugs in the area and we ran through a number of evictions and cleaned out the bad people from the park. Now occupancy is low, and I have about 10 MHs that need to be rehabbed and they are in bad shape, upwards of 10+k rehab per trailer so I'll be looking to dump 100k into it to get it in the kind of shape I'd like it to be in to sell it. Steady rent, no delinquencies. I'm confident in the ability to get good renters and keep the rent coming in, but I don't want to rent them in the state they're in.
My question for you wonderful people. Are there other options? I'm all for getting trailers moved in but in reality there's little options.
Buying a trailer for even 2k will need work, 3k to move/set up. You're 5k in. You need to remove the last trailer which is another 3k so now we're at 8k. That's WITH a MH that doesn't need rehab. If you're picking up a MH for 2k you should expect some level of rehab so let's call it easy and say 2k. that's our 10k mark so I'm back at square one. If you need infrastructure work to get them set in place your 10k budget goes out the window.
Am I stuck at the 10k/MH budget I've set to work through them all slowly and get them rented as they go along and mark it up to yet another lesson in investing? Or is there anything with insurance or a company that fills parks up and places people in mortgages with me already having the land and willing to work with a 3rd party?
I want to make sure I'm making the right moves here and not wasting my time/money in hammering this square peg if it's a round hole. Especially if there's a "Dude, just do X" response that I haven't thought of.
Thanks everyone for your time.