All Forum Posts by: Roger D Jones

Samuel,

Not 100% sure on my recollection but I think we were $4200 all in.  Transformer upgrade, wire and conduit.  I bought my own post, box and meter.  

Rog

My MHPs and LTRV parks are individually metered meaning tenant pays direct to the the utility for power.  Obviously the best way to go if possible.  Your answer will certainly lie with the utility company... they will know why things are the way they are.  Late last year I added a couple long term RV spots and went with one meter to save money (I include all utilities in the space rent for just these two RV spots).  Had to upgrade the transformer though and that was a bit of an expense.  Point being those necessary upgrades may be the reason prior owner chose to handle his own meter reading and billing.  

Anywho... call your power utility and they will have the scoop for you I am sure.

I think if you are actively engaged in the day to day operations with control of the decisions that shape your profit and loss- it is a business.  With an investment your dumping your money in someone else's bucket and allowing them the control and management thus the results.  Never really thought about it...

Interesting... I have grown up in Washington.  My parks are there.  You planning Tenant Owned Homes or Park Owned Rentals?  Given your beautiful location what is the status in the area for long term RV?  Those tiny homes are cute to look at but wickedly expensive.

A 16% expense ratio (if I understand you correctly) seems pretty low for an all POH park.  How many homes and is your uncle doing all the maintenance himself?  Does he have insurance on the homes and park?  

Jimmy

Best advice without getting into the nuts and bolts of your situation is to simply avoid building a mhp from scratch.  Unless you really have expertise in site development, permitting, construction, landscaping, etc... you will be in way over your head financially before you ever hopefully get a single home in your park.  PE groups are causing tremendous instability in the mobile home realty market which is keeping potential home buyers out of parks.  You are better off finding a pre existing park and purchasing as is.  

There is a reason very, very, very few new mobile home parks are being developed.  It doesn't pencil.

@Debbie Nunez
I would recommend an abundance of caution here.  With my crayon in hand it looks like this is going to be a very difficult investment to crayon out.  With 75k in you want to absolutely ensure ensure a 10% cash on cash return or $625 per month.  Layer in the pad rental, insurance and maintenance you need to be close to $2k in monthly rent.  And lastly as @Arman Ahmed mentions above... you got to be able to get out of it as a diminishing asset.  You are also tying up 75k that you could use for a better appreciating investment.

 I have always used that thought process when looking at parks, rehabs or multi family investments.  There are a lot of really smart people out there with money to invest to make more money.  Why haven't they jumped on this deal?  Has probably caused me to lose some opportunities... but maybe it has also kept me out of hot water.

Wow... I think @Dominic Mazzarella brings up some very, very good points.  The seller being a MH dealer really sends me jumping overboard.  Sounds like he is doesn't want to invest in his own park with his own trailers but wants you to buy it at a premium then buy his trailers at full retail to put into the park.  

Park has to be profitable to you on day one as it sits right now with positive cash flow.  Then you can talk to him about in fill but at closer to wholesale pricing than retail.

Sounds like a pretty fishy seller...

 Frank and his team are knowledgeable well versed in MHP operational issues but they have an agenda that they aggressively pursue.   Important to know who they are and who they are not.  Depending on what type of investor you are what your goals are you will learn more from the forum than from their bootcamp- which if it only proffers one investment strategy really is not worth the money.