Key Points In Mobile Home Parks.

7 Replies

Howdy all, 

I wanted to see what the key points of interest are in mobile home park. I have 2 sellers each with 2 parks making up 50 homes and I want to make sure I can ask the right questions and present the right info to buyers. I know that the "where" is very important and of the course the cost, but what else should I know/consider when wholesaling mobile homes. Any advice is good advice and I look forward to reading your comments. 

Thank you.

Where are they? I might be interested. Most people are only looking for city water and sewer from what I gather and would like to know how many POH (park owned homes) there are.

Originally posted by @Jordan Moorhead :

Where are they? I might be interested. Most people are only looking for city water and sewer from what I gather and would like to know how many POH (park owned homes) there are.

 They are in Wichita Falls TX and Burkburrnet  TX. I do not have the number of Park Owned Homes yet, we are going over and finalizing the last of the list details this week. The city dose take care of the water, sewer, and streets. 

The age and the condition of the homes are important factors. What are current rents vs market rents? Lastly, is there onsite management and/or maintenance? Not sure if these parks are large enough to support it.

@Scott Stamps Thanks for the information. Most of the homes were built from 1994-2010, market rents are $700, current rents are $750+, one of the parks has management, but I am not sure that will transfer with the sale as they are a family business.

Some key points when it come to looking at the value of mobile home parks are going to be:

1.  How many lots does each park have?

2.  How many lots are rented?

3. How many empty spaces and what work do those lots need?

4. How much is the lot rent and current rent roll?

5.  Number and age of park owned homes?

6.  City water or well?

7.  City sewer or lagoon system, septic?

6.  Current expenses and a break down of those expenses

7.  Total income and the breakdown of the income

8.  Road material and is there off street parking?

9.  Age of community and average age of the homes there?

10.  Amenities? pool, club house, basketball court, playground, etc....

11.  Any deferred maintenance?

This should get you off to a good start in what to look for when you are looking at key points in mobile home parks / manufactured home communities but, this is only a start!