Hi folks, I'm analyzing a Mobile Home Park with 10 Acres, 11 mobile homes. The property is non-conforming as to land use and zoning now and cannot have more mobile homes or replace the old ones. The deal still with good cap rate, I like the area but I was thinking of rezoning in 3 years and build houses or replace the mobile homes. Any suggestion? Any idea can help me to analyze this deal from a different angle?
Any problem to remove the mobile home tenants or I should do like regular tenants?
@Aline Zamora You're kind of limited to what you can do with the land as it stands now. So yes, if you have plans for the future to either build houses or replace the mobile homes you'll need to rezone which can take time. Regarding the mobile home tenants, you'll have to figure out your time frame and decide when you want to do the change. When it comes to renting, some landlords either to month-to-month or put their mobile home tenants on yearly leases. It just depends on the individual and their comfort level. Good luck with the deal!
Thank you so much Rachel.
If the property is non conforming for land use and zoning as of now and usage is grandfathered (mobile home park), is allowed zoning matching to build/develop residential community? Does it have public utilities (sewer/water) or access to tap into it? How is infrastructure including roads/electric etc?
1) If current zoning allows building residential community,
2) If land has public utilities and good infrastructure,
3) If you have experience or know folks who are good developers,
4) If location supports building community and provides substantial financial gain,
it may be a good opportunity.
Are these mobile homes resident owned or park owned? Month to month or yearly leases? If resident owned mobile homes, it may be expensive for them to move and you may subsidize the cost (if redevelopment is more lucrative). For park owned homes, it may be a bit easier to give tenants ample notice and sell those mobile homes, after tenants leave.
Good luck and keep progressing.
If you can not tear down old mobile homes and replace with a new one (which is what i thought i
heard from you), you can add vinyl siding and roof-overs to old ones, that will create a great new look.
You could also look into "rv resort/camp ground" zoning, and replace with new park models and have a "tiny house community", that you could also rent as vacation rentals - if in a decent area for this type of rental.
NOTE- if you have seniors, you may have a really hard time getting them to leave. There are laws protecting them from eviction.