I am looking for input from someone who owns and operates a mobile home park, I am looking at a older park. Trailers are in rough condition 70's models. Pros and cons. Thanks
Hi Zack, We have a group of 3 of us who are offering on smallish parks in GA. 2 of us have been through mobilehomeuniversity.com boot camp. We've analyzed alot of parks and been making offers since middle of summer. One issue or another has kept us from closing. We'll be owner/operators soon I feel. We should hook up?
What's your questions?
In general the age of the homes are not the biggest issue, although from the looks it may seem like it. The bigger issues are:
- city sewer or septic.
- City billed water or well? Well is bad because of regulations on you doing daily testing and chlorination of the water. City master meter to the park and the park sub metering or worse paying the whole water bill is bad.
- Hopefully no natural gas on this park.
- Hopefully electricity is directly billed to the renter and utility owns the wires. But plenty of parks the park owns the wires and polls.
As long as the homes are livable old and ugly is ok. Leaking rusting roofs are a minor problem that has a simple fix. I forget... maybe $200 for a rubberized rolled membrane and rubberized product you roll on the old rusting roofs. Lots of other tricks to keep old homes livable.
How could I have left off:
- park owned homes, which means the park rents the homes out. This is a problematic business model. Evictions, damage and high turn over costs.
- vs occupant owned homes where the park just collects lot rent. THis is the best model here in the south. IE up north park owners have less trouble from park owned homes. But in the South it's a pain running park owned rentals. Many parks have completely converted to occupant owned homes.
Get yourself to MHU's Bootcamp.
We tend to stay away from parks with 1970's trailers if they are park-owned. That means they are full of renters that inevitably disrespect the homes and cost us big dollars to rehab. If the homes are all resident-owned, that's an entirely different situation. Your goal is to own a parking lot, not 1970's (or any vintage) mobile homes.
Bootcamp will make all this (and much, much, more) very clear.
Ive been trying to buy a mh park myself for about a year, and the big things were listed already in previous posts. Septic system? Are lots individually metered? Park owned homes? Jefferson said hit the nail on the head, you just want to rent the land, infrastructure, plowing, etc - those are your worries. I own a lot of MH's and you can make them livable with very very little money and time. Old and ugly are fine, If the roof, floor and windows are good - everything else is a bonus.
I forgot, more importantly, what is price of park and how many lots??????
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