Mobile Home Park for auction - what should I be thinking about?

Question

I'm looking at a MHP that is for auction. It is small, only 10 sites, with 8 homes owned by the site renters. There is a management company in place (which is a requirement of mine). The MHP is on city sewer and water (which I believe to be a bonus).

I've been renting single family homes for many years, but I don't have any experience with auctions or MHPs.
What do I need to look for and watch out for?

Todd Campbell · Answer

Thank you @Mario Dattilo for your response. There is a phase 1 environmental report and a Property Condition Report provided. All due diligence must take place prior to the auction. There is a small house included in the sale, for which the phase 1 environmental report suggested that there is likely LBP and ACM. I visited the property a few weeks ago, and there is a larger park of similar age adjacent to the property. I have not yet checked, but I wouldn't doubt if they were owned together and this is a selloff of problems for some quick cash. The suggested immediate repairs are in the $30k range. I will certainly checkout your youtube channel. Thanks a bunch!

Mario Dattilo · Answer

Can you complete your due diligence after auction after you win or does all DD need to be done pre-auction?

Is a phase1 environmental report and survey being provided?

I ask all think because the minimum you will need are those two. Others are necessary but not expensive.

You’re kind of asking how do mobile home parks work which is a lot to answer in a forum.

Check out my YouTube channel for how to value them and tons of things you need to know going into it. Sorry for the plug, but it’s a quick free resource to see if you want to pursue thing.

Reach out if you need help and need a 2nd eye on it.

Todd Campbell · Answer

If they were ever owned together, it seems like it was some time ago. Property has changed hands a few times. Thanks again for the tips and the videos. I've decided not to move forward on the MHP after applying what I had learned from your Youtube channel.

Mario Dattilo · Answer

@Todd Campbell check county records on who owns it. Typically if they owned both they would sell together. If that is a problem portion then yeah maybe they are.