Redeveloping a mobile home park

[Christian Carson]

Hello fellow investors,

I have an opportunity to purchase a large, 100+ unit mobile home park. The 28 acres it sits on is highly valuable land, the park is dilapidated, and the owners are behind on taxes. The city has been trying for years to get rid of it and merge it into the public park next door, but I suspect the highest and best use is a SFH development.

As I know little about MHPs, I would like to reach out to those of you who are experienced in dealing with them and what pitfalls to expect. Specifically I'm wondering about the following:

- How long is a typical mobile home lot lease?
- Would eviction be an option?
- How costly is it to dispose of an abandoned mobile home?
- Are there any other pitfalls to remediating the land for redevelopment into quarter-acre lots? Environmental considerations?

This sounds like a difficult task, but the potential is high due to its being adjacent to a beach and nestled between two public parks. It's now a matter of determining how much it will cost to clear the land and how long it will take to get all the units off the land.

I'd love to hear from anyone who has done something like this before!

Thanks

[Matt B.]

As park owners ourselves, I am curious as to why you would want to redevelop it into something else? Would there be that much more upside to it as opposed to just repositioning the park? Since the infrastructure is already in place and in close proximity to beach and parks, you may have a greater potential return with less headaches by creating a nicer community with potential rv space.

That being said, to answer your questions:

-You will need to see the actual leases(all of them) to really know how long they are. Typically they are 1 year or month to month, unless they are on some sort of seller financing arrangement. You have to watch out for the previous owners grandmother that has a 20 year lease at $50 a month.

-Eviction is an option, but it would be simpler on you if you could work something out with another park owner to take your tenants. A win for you, the park owner and the tenant. Also, you won't look as much like the bad guy kicking poor people out to make a fancy development.

-Abandoned homes can usually be sold or given away for free. Again look for another park owner that wants them.

-Not sure of other pitfalls. You will want a phase 1 environmental study either way.

Much success to you whatever route you take.