Wise to create new Mobile Home Park on 5 acres?

[Carrie Collyer]

Assuming the county zoning will allow a mobile home park, is it cost-prohibitive to start from scratch and build a park on 5 acres on a good highway outside of town?  Basic, nothing fancy. 12 x 70  > 16 x 80. Used homes. I hope to lease option them to buyers and allow owners to bring in decent homes. I appreciate your input!  Carrie

[Mike B.]

Hi Carrie - in BP Podcast #339, the guest mentioned that the country doesn't allow new mobile home parks to be built anymore - meaning, in order to invest in a park, you have to purchase one that's already there.

[Andrew Davidson]

Originally posted by @Mike B.:

Hi Carrie - in BP Podcast #339, the guest mentioned that the country doesn't allow new mobile home parks to be built anymore - meaning, in order to invest in a park, you have to purchase one that's already there.

I think he said it’s difficult to make a park, not impossible. And more parks close then open so the supply is shrinking. 

[Mike B.]

Originally posted by @Andrew Davidson:

I think he said it’s difficult to make a park, not impossible. And more parks close then open so the supply is shrinking. 

Hey Andrew - I definitely agree that he said the second part but I specifically recall him saying along the lines of "..the most important and unusual factor of a mobile home park is that they don't allow them to be built anymore."

[Andrew Davidson]

Originally posted by @Mike B.:

Originally posted by @Andrew Davidson:

I think he said it’s difficult to make a park, not impossible. And more parks close then open so the supply is shrinking. 

Hey Andrew - I definitely agree that he said the second part but I specifically recall him saying along the lines of "..the most important and unusual factor of a mobile home park is that they don't allow them to be built anymore."

 
I guess I took that to mean, in general they’re not allowed which is how I can to think hard but not impossible. I’m sure there are areas that allow them. I would think the Deep South for sure. Not sure about OPs exact location. 

[Joshua Diaz]

While it is not impossible to create a new park, podcasts and books I’ve read in general all point to the problem of how expensive it really is to create a new mobile home park from scratch.  You have to count for the costs of building the pads, the cost of hooking up utilities, costs of either building a well or connecting to city lines, costs of building a septic tank or connecting to city lines,  the phase 1 survey to make sure the land is not contaminated, not to mention all the fees I probably don’t even know about to maleness it ok with the city.

Not meant to scare you or anything but just a precaution to be aware of what you are really going to pay before you get started in this endeavor.

[Ken Rishel]

Mike B. from Chicago, IL

replied about 21 hours ago

Hi Carrie - in BP Podcast #339, the guest mentioned that the country doesn't allow new mobile home parks to be built anymore - meaning, in order to invest in a park, you have to purchase one that's already there.

Mike - This is so wrong. First of all, that would be a Fair Housing lawsuit waiting to happen - if HUD didn't get involved first. Second, while developing new parks has become less common than it was when I developed them in the 1970s-80s, I am personally aware of twenty large developments underway right now, one of which is in Illinois and a very large one in Florida by a Chicago based MH operator.

BP can be a very good source of information and, unfortunately a constant source of erroneous information as well.

[James Lindholm]

@Carrie Collyer

Before investigating too much further you may want to check with zoning to see if it’s a possibility. Something like this in my county would need a public review in the township it would be built in and as of late, there has been strong opposition for projects like this.

[Michael Gansberg]

@Carrie Collyer - have you considered prefab housing? I expect you'd spend somewhat more than on building a MHP, but I'm pretty certain you could get a much better product in the end. Plus- right or wrong- it may be easier to get through zoning, as I believe there is some stigma attached to MHPs. It would be more challenging to sell off the properties if you did it this way, but it could make for a great multifamily rental property. 

You might also take a look into passive house standards. Some prefab builders are building to this standard, lessening the need for heating and cooling. This translates into lower operating costs for residents, which makes for happier residents. 

[Carrie Collyer]

Thanks so much for the responses. Very interesting @Michael Gansberg I need to look into that. Thanks for the input @Joshua Diaz, @Andrew Davidson, @Mike B., @James Lindholm, @Ken Rishel, @Aaron Belt. The county did say the 5 acres would need to be rezoned and get a ton of approval. Probably not realistic, so I'll keep my eye out for an existing small to mid-sized park.

[Rachel H.]

@Carrie Collyer This can definitely be done on a small scale. I've seen it done firsthand by others. Just be sure to check with the zoning office regarding the land and what you can and cannot do. Some areas will limit the number and/or age of mobile homes placed on the land. Good luck!