All Forum Posts by: Ingrid J.

@Rangsey Chum I can recommend getting in touch with Bookkeeper360. They do taxes and bookkeeping, but are also very knowledgable about the laws governing LLCs, as they also help with the incorporation and taxation of all kinds of companies. 

Best of luck!

@McKenzie Peterson I can recommend David Rousher's book "How to Invest in a mobile home park - for business profit and money" in this case.

His chapter 6 "Why not just build a mobile home park?" will give you a complete layout of the challanges and costs related to establishing a new park. In summary, it's not cheap and it's not easily done!

@Ryan Keenan 

I would recommend consulting with an eviction lawyer regarding this case. 

However on a general basis you can look into your state's statues concerning rent collection, and in which cases you can give them a shorter notice to vacate. There should exist a 24-Hour-Notice-To-Vacate procedure for special cases such as: imminent threats, reckless endangerment (causing serious risk of injury to someone else on the premises other than you), inflicting substational personal injury ect. In other words, extreme but spesific situations which can occur. 

The 24-hour notice should in short provide you with 24 hours to file it with the court if they remain. This may differ from state to state, so consult with an eviction lawyer. Best of luck!

@DJ Tosh Here is a tip I aquired from a podcast about mobile home parks:

Call the department at the local county (near the park) who handles records for mobile home parks. The county clerk should be able to provide you with information about who owns the park and which lender has the mortgage on it. That way you can better find banks who provide mortgages to MHPs in that area. 

Best of luck!

@Bill F. Thanks a lot! 

@Bill F. Thanks for answering. 

I understand that the NOI does not include the debt service. And it makes sense, as financing can be different from buyer to buyer.

What I haven't found any numbers on is this: When you have calculated the NOI - how big is usually the debt service? Like what would be common? Let's say I buy a park and my NOI is 80 k annually. What would be a healthy portion of that to dedicate to the debt service?

Congrats on your first park! 

I’m also wondering what Chad C. asked, if anyone can chime in.

@Thuytram Tran Normally property management companies charge between 5 to 10 % of your gross income to manage your park. If the current local property manager charges the same I would get a comparable quote from a professional property management company, to negotiate the price after you have purchased the MHP. Before you purchase anything I would keep the local manager on my side, and not mention that you have got a comparable quote from someone else. Having the property manager on your side will help you land the deal in the first place.

Have you read "How to invest in a mobile home park" by the way? It's an easy to read book by David Rousher about the basics of MHPs. It will give you insight on issues like this.

@Shea Spinelli Many valid points have been made about the rehab issues, so I won't comment on that.

My question retains to the expense ratio of the park. If it's only netting 4 k in cash flow after expenses are paid, the question is why? Normally, as far as I know, MHPs should have an expense ratio of about 30-40 %, while the one you're considering is approximately 53 %. I would ask the current owner whether major costs like sewer/electrical have been submetered. If not, you could save a lot on installing submeters.

 Agreed. If a tree falls on its own and damages the home, the home owner insurance should cover the client. 

If however the tree falls when somone is removing the tree it is a liability issue, and should be covered by that somone’s liability insurance.