Mobile Home Park Development

4 Replies

Hey BP,

I'm itching to get in to the MPH game.  I've looked at a few, run the numbers on a few but haven't pulled the trigger.  The property I looked at today has me thinking.

25.25 total acres 

11 park owned homes on site, 6 park owned homes off site (2 rented, 2 ready to rent.  The current owners lease some adjoining property and have homes on those), 3 park lots ready for homes and 2 additional park owned homes not set up.  The existing homes are in a wide range of condition.  

Average lot rent in our area is $300.  There is a huge need for affordable housing.  Every MHP I spoke to in my research had 100% occupancy

Option 1:

Purchase the entire property.  Develop 14.96 acre chunk in to 44 pads ($968,000-1,056,000 *$22-24K per pad* expense).  Move all the decent POH to the  14 existing lots outside of that tract (potential monthly rent $5,700) to help offset development costs and service the loan.

Option 2:

Only purchase the 14.96 acres for $200k and develop.

I would love to find a park that is already running, not needing any development but that has been hard to do.  I'm talking with an investor on the hard money side.  I don't really want to partner with him but that is an option.  Thoughts?  

Originally posted by @Jason Graves :

@Caleb Coblentz

Where’s the property?

Have you checked with the city to see if they will allow you add / build 40 pads?

Its in Myrtle Beach, SC.  Bonus is the property is zoned for MHP.  Chances are pretty slim on rezoning, I feel pretty good about this one.  That would be covered in the due diligence period.  


Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here