Anyone can buy a mobile home park. And many do. But if your aim is to earn money with it, then there are a few simple rules that you need to consider before taking that step. If you follow these tips, your chance for success is 1,000percent higher, and your chance for failure is virtually eliminated. There are two different types of mobile home parks out there. Fancy ones and easy ones. And the fancy ones, contrary to popular belief, do not earn any money. The bulls eye in mobile home parks is going after lower income renters. To this client established, a mobile home park provides an unbelievable price, where they could have the safety of their own house, and a yard for the dog and kids. And it is the only type of detached housing they could ever afford. The more upper-end parks are always in a precarious position.
Their lot rent plus home price often exceeds 1,000 a month and at the price, they have many alternatives. They may purchase a mobile home, but will probably grow disenchanted with it a couple of months later, and discover a stick build house they enjoy better in the same monthly fee. They run off, and your continuity of lot rent is destroyed. Even worse, the lender then yanks the foreclosed house out of your playground, and you have got a vacant lot with very little possibility of re-filling it in the present economy. Mobile home parks have their Own regular costs and ratios. They are not like any other type of real estate. Just because you have owned an apartment complex does not mean that you have some grasp of this specific niche. If You Would like to buy a mobile Home park, you have got to understand the actual line items for both revenue and cost, and the assortment of what those should be.
Every time someone calls our Site to complain of a dreadful park investment they have made, it revolves around their lack of due diligence. Perhaps they trusted what the seller said about the property tax, only to find they had been off by 300%. Or they just guessed on the sewer and water cost and it turns out they were wrong by 200%. There is no excuse for these sort of problems. If you do good due diligence, you simply buy great deals. Not all parks are made equal. Some have good futures and a few have no future. You have got to learn how to spot what makes for a winner and what makes for a loser. And it is more complex than simply being found in certain Top 10 Metro Areas list off the net. A Few of the items that will Point towards a winning deal of mobile homes include size, location, utility system structure, size of lots, road infrastructure, competing flat rents, etc. If you do not buy based on the perfect set of criteria, you will have trouble making a deal work.