Mobile Home Park in Northern Ontario - I'm a new investor, help!
Good morning, I'm a new investor interested in buying a mobile home park in Northern Ontario. The property has 10 homes on it right now (mix of owned by the park and privately owned paying the park rent). There is also a house on the property and lots of space to expand and add more lots. There is potential to add a campsite so that summer visitors could park RVs to generate additional revenue. I'd just have to dig new wells for the water supply. I have a list of questions I want to ask the seller and concerns about insurance, zoning and vacancy rates. I think one of the biggest risks is that I don't live in the same city as the mobile home park so I'd have to hire a park operator that I trust to manage the park, handle snow removal and cutting the grass, etc. The estimated cost of paying a park operator/property manager is cutting into the cap rate on the investment. The seller was the owner/operator and lived in the house on the property. He recommended I talk to one of his best tenants and ask him if he'd like to manage the park.
I'm looking for any feedback or information you think I should know as I do my due diligence on this. Thanks so much for your help!