For general knowledge, is your group looking to invest in Australia? or abroad?
- @Josh Oaten I know that Kevin Bupp does a ton in the mobile home park space. HERE is a link to his podcast. I recently heard a podcast that @Brandon Turner did with him HERE on BP where they discussed the mobile home space.
On the same note, following some of Brandons goings on, I believe he just purchased a mobile home community.
From listening to Kevin Bupp's podcast, he seems to be a super cool guy who always mentions that if you're ever in the Tampa Bay area to look him up and set up a meeting over some beers or lunch....or both. He seems genuine.
Anyway, hope this helps!
What are you interested in learning about? Parks can be cash cows and they can also be money pits. As a general rule, you prefer that the homes are owned by the tenant and you rent them the lot. Less headache and better resale value. That being said people make a lot of money creating and selling mobile home notes (see Lonnie Scruggs). There are a few ways to create income from day 1 depending on the deal. I work with a few investors actively looking for parks and are open to partnering or putting up equity. There are some general questions you want to ask when evaluating any deal. Happy to discuss if you'd like.
Jacob Ketchum Looking to invest in the US. They are over there.
@John Bryson Thank you for the information. I will definitely have a look into those links and try reach out to both Kevin and Brandon on what they are up to in this space. I appreciate your help!
@Josh Oaten - sounds like you're looking for specific playbooks and network, but it never hurts to have market insights. here's some recent reading on the asset class:
I am also looking for help with a playbook and network. I'm in Canada, and looking at a park here. My team has experience in new build apartment buildings, so this is a new asset class for us. Anybody north of the border with some experience in this asset class?
I am Canadian that own parks in US. Don’t think the due diligence part is much different other than local regulations in Canada. Financing I have no clue about.
But I saw your other post and 41% expense ratio is kinda high and may be some value add opportunities to lower it.
I owned multi family before I owned mobile home parks and one thing that is definitely a change is the water and sewer. Whether it’s city or private systems you should get the main lines snaked that is in your property bc they can be old and cause leaks. And if it’s a private well or waste water make sure you spend on proper inspections for those systems.
I wonder what the cap rates in your neck of the woods are?
Thanks for the reply Hai. I thought that was a bit high for a MHP. It does have several RV lots as well which may play a role in the expenses.
Thank you for the input on the inspections - I 100% agree. It is older, but is on city water/sewer which is a bonus. Old leaky pipes will be looked into for sure, thank you.
The asking CAP rate is 8, in reality more like 7.5, but it's decent. Congrats on making the jump to the US market. I still feel like I'm far too much of a rookie to tackle that hurdle yet.
7.5 cap is pretty good as long as rental market is stable. I personally am not interested in any parks involved with RVs. It take a lot of the multi family element from the park as it is like a daily/weekly rental. I don’t like moving parts and the maintenance that is attached to it.
Most investors in MH parks prefer lot leases vs park owned homes because of less maintenance but I love park owned homes as long as they are done and done right in the beginning and have a reliable and trustworthy park manager and staff.
Yeah, the RV part is a bit of a red flag for me personally. Though I do see a lot of potential value add services. Laundry services, wifi..etc. Straight mobile home park with owner-occupied homes; I'm not sure of too many ways to force appreciation. Any tips there?
Thanks for sharing this blog post @Spencer Hilligoss ! It is very insightful.
I recently liquidated my SFH's and small multifamily homes to purchase Mobile home Park and its thus far the best decision Ive made. Check Frank and Dave from Mobile Home University they are good knowledge especially for first time buyer into MHP. They have a quick video of why MHP is by far the best investment niche in Real estate investing. Kevin Bupp Podcast is a good information as well as Jefferson. Education is the key getting into it. Hope this few information will help you!
Thanks for the posts guys. I am in the early process of building a 55+ park in Ca. I have 70 acres set aside for it. Have any of you ever built a park?