All Forum Posts by: Logan M.

 Thanks Dave!

It is inevitable that when you are in the MHP/Affordable Housing space you will have applicants who are Felons, Drug Addicts, Sex Offenders and have poor credit.

Here is how I handle each of them:

Felonies: It depends on the felony but we don't allow any felon that had the crime occur within the last 2+ years and I am very careful about this.

Drugs: I try to be compassionate but I have found that any recent drug offenses lead to a lot of bad behavior. I won't go into details but I have tried to work with many tenants with drug issues and have yet to not have it hit me with a huge financial hit.

Sex Offenders: Nope, I have a policy for No Sex Offenders. No exceptions.

Poor Credit/No Credit: This depends but we will do double the deposit or pre-paid rent etc.

I know every state is different but we find that if we make sure the tenants getting into our parks have a good history the park runs a lot better.

 Great advice, I will look into it.

 I need to focus more on broker relationships

This year I have set a goal to acquire 12 new communities.

Currently, we have 8 communities but last year we acquired 4 new communities.

A lot of my time is shifting from day-to-day operations to acquisition of new parks.

The ways I am going to find these communities are:

1. Checking a few competing sources on a daily basis including the MLS.

2. Directly contacting the owners

3. Looks for development opportunities to build new communities

Any other suggestions on strategies that have worked for you?

 I walked the property yesterday with the company that will be doing our plans and gained a lot of useful insight. Next week he will be doing soil samples but he said he has done soil samples in other areas nearby.

You mentioned the tiles and I am not sure how they are different than the chamber system but that is what he recommends. We would need 5000 sqft per system plus the home so about 6000 sqft per unit.

Once we get the soil tests back we will do an updated site plan and will have a better idea of the density we will pursue.

 A lot is going to come down to the competency of those who will support the park like a Handyman and other trades.

We have parks with both, park owned and tenant owned.

I will make this a quick post with bullet points.

Key takeaways from my experiences doing development projects:

1. If you are developing typical multifamily banks are more excited about them than a MHP.

2. Development creates opportunities to create a higher and best use and sell for a profit.

3. The development of actual buildings creates huge depreciation potential.

4. I would also argue that buildings are more liquid than a mhp in most scenarios.

Takeaways from MHPs

1. You can't beat the cash flow.

2. Mobile home park investing creates the ideal long-term hold for future development.

3. There is more low-hanging fruit in the value-add on mhps than building new developments in most cases, dollar for dollar.

4. I would argue the risk is significantly lower buying an existing mhp than building a new building.


I am curious to see what others think and how their experiences compare.

The attached image is a rendering of one of the eight apartments we are currently building to be done in May.

1. Is your source of water city or a drilled well? City Water

2. If drilled. What is its capacity and distance from the drain fields? I need to have an engineer do the planning on this because it is regulated by the county and is multifamily so it creates some odd ordinances.

3. Are you allowed to do a two sewer pond system? I could check but I doubt we have the space.

4. Can you do a pump out tank system? Check costs. I will check on this

5. Do you have enough elevation change above ground or below? Will you need a grinder lift station? It is pretty flat with some grading needed but we should be fine.

6. How far is the nearest sewer connection? It would be another city over so probably 3 miles or more.

 I agree with you and I think there are plenty of opportunities to create a win-win for everyone. Finding the right people is the most difficult part but when you find them you need to take care of them.