Mobile home park investment

[Van Tran]

Hello all,
I am brand new to the forum. I live in Portland, Oregon. We are looking around to buy small land and rent out for mobile home park. Is it a good idea for mobile park investment?
I have two properties and plan to sell one out so I can have some cash on hand for other investments. Is it better to keep the home for rental property and find other sources to fund for future investments since we want to invest in rental properties?

Sincerely,

Van

[Erik Estrada]

Quote from @Van Tran:
Hello all,
I am brand new to the forum. I live in Portland, Oregon. We are looking around to buy small land and rent out for mobile home park. Is it a good idea for mobile park investment?
I have two properties and plan to sell one out so I can have some cash on hand for other investments. Is it better to keep the home for rental property and find other sources to fund for future investments since we want to invest in rental properties?

Sincerely,

Van

 Hey Van! Are you planning on using the cash to buy the land outright? Or are you planning to finance the land and then convert it to a mobile home park?

[Van Tran]

Erik,

Thank you for taking the time and replying my questions. I do not have cash on hand that is why i am planning on selling my second home because interest rate is crazy high right now. I personally don't want to sell the home and want to rent it out because we are looking to invest in rental property.

Sincerely,

Van

[Erik Estrada]

Quote from @Van Tran:

Erik,

Thank you for taking the time and replying my questions. I do not have cash on hand that is why i am planning on selling my second home because interest rate is crazy high right now. I personally don't want to sell the home and want to rent it out because we are looking to invest in rental property.

Sincerely,

Van

Ah I see. Rates are relatively high compared to last year. Selling when you don't have to would mean losing on potential appreciation over time and rents increasing because of the market. Do you have tenants in place for this property? Are the market rents higher than what you are leasing it out for? If the numbers make sense, exploring a DSCR cash out refi could make sense, in the long run.

[Van Tran]

The house is up for sale now so there is no tenant at this time. 

[Dallas Regimbal]

@Van Tran Mobile home parks as an investment have become very popular in recent years and can be a good investment. I would say in your case since you're wanting to buy land and then turn it into a mobile home park you'll want to do due diligence on looking into not only zoning and laws but also the supply and demand of mobile home parks in the market you're looking to purchase the land. For your next question regarding if you should keep or sell your rental property, I would say it depends on your long term goals. If you are wanting to continue investing in rental properties as well as mobile homes them I would suggest keeping the rental and using a loan to purchase the land. This of course is only if you have done your due diligence and you know there is demand to justify your numbers and it aligns with your long term goals. I hope this helps!

[Benjamin Maciel]

Hi Van sent you a Dm. This is something I am pursuing currently. I live in North Plains, OR so pretty close!