Mobile Home Park Development
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?
Following
@Caleb Coblentz
Where’s the property?
Have you checked with the city to see if they will allow you add / build 40 pads?
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.