All Forum Posts by: Logan M.

I have felt drawn to investing in Mobile Home Parks partially because I feel like it allows me to have an impact by providing affordable housing.

What I want to know is if there is a real solution to the unaffordability of housing in America.

I see grant programs and government assistance but it seems like it just inflates to problem.

Is the answer that we just need more housing units? What am I missing?

@Ryan Muska, did you end up taking this park down?

My quick tips for buying parks:

1. Know the condition today

2. Understand the value add opportunities 

3. Create a realistic plan for how you are going to make it happen

Don't buy at market and don't buy properties without value add opportunities.

 The purpose is to accelerate your depreciation schedule.

Typically, you depreciate real estate over 27.5 years but this study would allow for let's say carpet to be fully depreciated in four or five years. Those numbers are rough so consult with your CPA.

@Edward Romero, did they give you a breakdown of the expenses?

I would second @Jordan Moorhead.

The biggest factor will be your amenities like a clubhouse, park, pool etc (CAPX) and your utility set-up. Good set-ups can be fine on septic tanks but you can also have nightmare scenarios with septic tanks. 

I would never guess on these numbers though, you need to get historical data.

 Do you know anyone personally who has been doing this at a large scale like dozens of mobile homes or even hundreds?

 Zoning and MHPs are a major struggle. I would suggest finding a small park that already exists or doing double wides on permanent foundations, if you do that your location options increase by a hundred times.

 That is the best way to set it up. I have been seller financing all the homes I have been getting with purchases.

The picture below is my smallest mobile home park community.

It isn't flashy, it isn't something I brag to my Mom about, it is a solid park that pays every month.

Many investors are drawn to this idea of buying large multifamily properties but let me break down a few terms on this park.

-Purchased 0% down

-5-year term

-6% interest only payments

-Sale included ownership for all 6 homes

This small 6-space park cashflows about $2,000/month and rents are far below market.

My biggest suggestion to anyone starting in the mobile home park space is to not be scared of some of the small but solid deals, don't overlook them, and think of them as a small step in your investing journey.