I need some advice on buying a vacant mobile home park. It has 9 lots. It has been vacant for 2 years. It previously serviced the nearby university. How do I determine value? How do I get my buyer financed?
First question to get answered should be whether it is currently an allowable use. If the use as a mobile home park was allowed due to being "grandfathered" and it has been vacant for 2 years, there is a chance that it either can't be used for that again, OR it may need alteration to comply with newer rules. Before going any further, I would make some calls to verify zoning compliance.
Best of luck.
Once you determine if it even can be run again as a Mobile Home Park, then it is really just land value at this point. Since there is no income, it is going to cost you significantly to either buy and move homes in or find owners who want to move there; homes rarely move so maybe partnering with a local dealer might work.
We ran into several "parks" being sold by distressed owners only to discover the city/town officials were dead set against "that kind of people" (yes, one City Manager used that phrase) moving into their city. Other towns have passed laws that limit utilities or moving in any new homes at all, so be VERY careful in your due diligence process. Don't be afraid to go down to City hall or meet with the local water boards or county officials in person so you get the real info on the situation. municode.com is a good place to search local ordinances to see if they even allow manufactured home parks.
A vacant 'park' is not worth much other than land value at this point. If you compare it to what it might take to build from scratch, then you might see if it's worth to buy or build.
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