All Forum Posts by: Todd Willhoite

I plan on attending.  Look forward to meeting everyone

One very important inspection I didn't mention specifically, but should not be forgotten, is obtaining a Phase 1 environmental report.  The due diligence is very important.  A short podcast on due diligence can be found at MOBILE HOME PARK MASTERY: EPISODE 12

A plumber should inspect the water and sewer lines, check out the sufficiency of the clean-outs.  Running a camera through the sewer lines will let you know their condition.  If you have sub-master metered natural gas the plumber may be able to test the system out for you.   

If you have a lagoon or treatment plant you will need to find an expert in that area. If you have a well then you will need someone qualified to test it and review the well records.  If the park has septic, then you will want to have them inspected by someone who knows septic systems.  

An electrician can inspect the electric system including the lines, poles and boxes.  

There are so many other things to check out in due diligence that I recommend buying the Mobile Home University's "The Mobile Home Park Due Diligence Manual" to help you protect yourself.

I second what @Clay O. says.  Real good information aimed at people starting out.  I too bought one to give to a college age person.

As others have suggested, don't just look at gross income and expect to keep it all.  You will have lots of expenses on this park, i.e. maintenance, taxes, insurance, well testing, septic tank pumping, and the risk of some big capital expenses for the well and septic.  Who is going to buy the trailers?  Is the person who has the cash to buy the trailer going to live in the trailer in it's current condition?  You may have to sell through a rent credit program, and when the tenant moves in the middle of the night, you will get the trailer back in a trashed condition and then you will have to pay to fix it up and try to sell it again.  

I have a couple employees and I am looking for an online company to do our payroll tax reporting, withholding, etc.  Anyone have a suggestion for a competent online company that has reasonable charges for such a small operation?

What are market rents?  Can rent on the unit be raised?  

Make sure your contract gives you the right to inspect the property and walk away if you don't like what you see on the inside without losing any earnest money.

Great deal and a nice way to start your investing career.

For clarification if you seasoned the property for 6 months you could have received 80% of appraised value, but with deferred financing the most you could get was 80% of purchase price, correct?  

@Andrew Postell love your explanation.  Can you elaborate on the "create an LLC that lends a mortgage for you"?  Thank you.

You should also think about whether the park has room to put in a new leach field if the current one fails?