Purchasing Mobile Home Park, out of state, deployed

5 Replies

This is my first post I have made on Bigger Pockets. There has been a couple times where I almost made an entry into the forums but I figured I would wait till I get a little more experience under my belt. So where do I sit? Currently I am working on closing my second property which will be my primary residence and I have had my condo (my first property) rented out for roughly the last two years. My wife and I ended up renting an apartment in order to meet funding guidelines as a "seasoned landlord". Now that I have that out of the way I have a relatively easy goal of owning 5 houses in 4 years, a lofty goal for a few but I am nearly 40% there.

I was searching around clicking through various real estate pages in a couple of states and came across a mobile home park for sale. The trailers are owned by the park and average roughly $550 a month per unit. I am a little nervous with being out of state and purchasing this as I will not be able to visit the property for approximately four to five months. How do out of state investors gain the confidence to purchase real estate without ever walking the property and looking at it themselves?

First of all welcome to BP Jameson.  Mobile home parks have a lot of moving parts and I would not suggest jumping into the game as a hands off investor, unless you can do it with a "working partner" that is responsible for the day to day operation of the property. 

This fizzled out faster than a fourth of July firework. Sent a couple emails to the real estate agent only received one in return and that only included a simple proforma scribbled on a napkin. Either way time to pick up and move on to the next one. As much as I would of liked to own a 7 unit mobile home park, @Marc Faulkner, I do think you are right unless I can be hands on I think the moving parts of a mobile home park are a little much. Due to the size I do not think it would be feasible to have an onsite manger and that could land me in sticky situation. @Alexander Carrasco, I was planning on pulling together personal funds and couple of the people I work with to come up with the down payment then for financing I was going to ask the owner to carry back the rest with roughly a five year balloon. By doing a balloon in five years that would put us in a decent equity position and be able to refinance with a commercial loan. If the owner was going to deny carrying it I was going to pull a loan from Lending Club. There was no real need to do crowdfunding for it, but I thought it would be a "cool" way to fund a project. Either way this one is closed, time to move on to the next. Thank you for your replies Alexander and Marc.

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