Mobil home parking investment and analysis

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Mobil home parking investment and analysis

Sachin Maskey
Member since 2019 · 62 posts · 8 votes

I am planning to invest in Mobil home park and have found the deal . I am trying to analyze the deal and looking for feedback if there is any tool here in BP or website where I can analyze the deal if this is good or bad deal?

This Mobil home park is 49 unit park and 100 % rented

I wanted to know how to find

1. Lender - I have asked few banks local but no one does the Mobil home park finance . Is there any good financial strategy do you recommend ?

2. Property management- what kind and where do I find the property management for this kind to operate this professionally ?

3. Expenses- what would be the major expenses and other regular expenses I need to figure out

4 . Partners- I am also looking for other investor who can invest in this deal . I am not sure if there is some partnership strategy I can discuss so that we can proper entity is set up and good exit strategy

What partnership strategy is best for this kind of deal?

Any feedback is highly appreciated

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  • Julio Garcia
    Rental Property Investor · Modesto/Stockton/Merced, CA · Member since 2020 · 456 posts · 214 votes
    6y

    @Sachin Maskey

    It's great you found a deal. good questions, BTW. Though i am not currently investing in mobile homes, i have done some research.

    1. through my experience you're going to want to find a bank that deals with commercial financing. My lender linked me to the commercial side of their lending office. 

    2. If you found your niche, then you can start calling property management companies near the park. Some do it, some dont. Depending on the distance you are from the park you might want to manage it yourself, though with 49 units, might seem like a lot. A simple 'FOR RENT' out front can do wonders. 

    3. Major expenses include water. do renters pay or you? taxes is another expense. Capex, thats 49 roof, 49 windows, 49 plumbing, etc.

    4. the partnership depends on how you structure it. you can go 50/50. you can have your partner put down the $ and you take care of anything else (or vice versa), private investor that puts up money and you pay them back with interest. I think it depends on how you ant to structure it and how many partners. 

    Suggestions: do your research, Not all mobile home parks that are advertised for sale are good. Have to do your due diligence. I suggest you look for one in a place where it's expensive to live. it'll create demand for your more affordable housing. 

    Best of luck 

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  • Sachin Maskey
    OP
    Member since 2019 · 62 posts · 8 votes
    6y

    @Julio Garcia

    Thank you for your feedback

    In terms of expenses it seems like the home is not owned by park owner and it is owned by tenants so park owner don’t have to deal with 49 room / window etc

    But there is septic system which needs to be renovated every so often which can cost very high

    Tenants pays their own utilities

    I was looking for lenders but most of the bank do not provide financing

    Also if there is any tool which can calculate / analysis for the Mobil home park . I was not sure if I can use the same tools in BiggerPockets for multifamily

    Thanks

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  • Brenden MitchumBusiness Member
    Rental Property Investor · Atlanta, GA · Member since 2019 · 1k+ posts · 872 votes
    6y

    Hey @Sachin Maskey, welcome to the world of mobile home parks!

    If you have a killer deal on your hands, you should definitely find yourself an experience MHP investor to partner with. I say this because it sounds like you have absolutely zero knowledge in this space. This is a very dangerous thing in any asset class. You can easily purchase a terrible deal because you did not analyze it correctly. For example, if you analyzed this deal as a typical MF deal, you would almost certainly get it wrong. 

    I'd recommend joining a FB group that focuses on MHP. This one is fantastic and meets via zoom every Monday (130pm EST). Here, you will be able to find help with your deal analysis and potential partners. 

    Since deal analysis is the first and most important step here, I would be happy to help out. Just shoot me a message anytime. 

    [email protected]404-737-0018
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