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Updated over 5 years ago on . Most recent reply
- Property Manager
- New Orleans, La
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Two Mobile Home Park Deals - Buy or Not??
Hey BP! I have two mobile home parks that I am analyzing right now and I am curious on your thoughts.
First Park: Brand new development with 18 pads. All city utilities in a good area. There are no mobile homes currently on the property, so this adds another huge element. Local lot rents are around $350. New asphalt roads. Asking price is $700K. Cap rate in my area is around 7.5 to 8 depending on location.
Second Park: Much larger and already established. 108 Lots mixed with 61 RV spots (brand new), one triplex, two cabins, and the rest mobile homes (15 park owned). City utilities, $716K annual rents. List price is $3.5MM
In both of these areas, there is medium to strong housing markets and both are on the outskirts of major cities. Population and jobs are very solid.
- Michael Baradell
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#1 Mobile Home Park Investing Contributor
- Real Estate Investor
- Ste. Genevieve, MO
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#1 Mobile Home Park Investing Contributor
- Real Estate Investor
- Ste. Genevieve, MO
On park number two are you saying 108 mobile home lots and 61 RV lots or 108 total lots with 61 being RV? What is the mobile home park and RV lot rent, as well as the other structures? Who pays the water and sewer on the mobile home lots?
Joshua is 100% correct on the first deal -- no way that will work unless it's in Austin or a market in which dealers will rent lots sight unseen at a big rent.