Mobile home investing

[Sujit Koshy]

I am a newbie interested in small mobile home park investing.  What should I be looking for?  

[Frank Rolfe]

There are five attributes to any mobile home park deal:

1) Infrastructure

2) density

3) economics

4) age of homes

5) location

Until you understand the impact of each of these on mobile home park values and operations, then don't risk your money.

You can find the answers to these five topics at Mobile Home University. 

[Mario Dattilo]

Welcome to MHP World! 

1) Start with knowing what you are good at (ie deal sourcing, property mgt, due diligence, have capital/raising capital, etc) and what you want to do. It could be some or all of these roles. You can play this game as a individual or team sport.

2) Research the heck out of the industry and make sure it's where you want to invest. If you do then get educated thoroughly. Don't wing it. There are tons of resources such as biggerpockets, MHP Tribe, MHU, Youtube, podcasts, books, etc. The key is to find the data.

3) Start looking at real deals early on in your education so real life scenarios cause you to learn what is needed and not just text book.

4) If you decide you are going to play it as a team sport be very selective on who you partner with as you are marrying them. Find someone who compliments your skills well and is good at what you are not. Someone you can be comfortably married to for years. Otherwise do not partner.

Hope this helps you get started!

[Sujit Koshy]

Thank you Frank and Mario for the response. I appreciate it

[Paul Moore]

@Sujit Koshy, you scared me for a moment. I am in my 3rd decade as a real estate investor and my worst ever investments were in mobile homes. 4 of them. 3 of them were nightmares that ended horribly. 

I read your headline first. 

Then I read your post and realized you were talking about mobile home PARKS. Mobile home parks are one of the best investments I have ever made. @Frank Rolfe above mentioned Mobile Home University and I recommend you go there to get education, training, find a community of like-minded investors. Another great option to help get started is a fairly recent book called The Mobile Home Park Manifesto by Glenn D. Esterson. 

Mobile home park investing has been investing for my investment firm and our investors. I wish you the best of luck as you start down this path. Good luck! 

[Jack Martin]

@Sujit Koshy to add to what has been said above:

Become well educated in how to properly underwrite prospective deals, and then underwrite a LOT of deals.

Either partner with a MHP operator, or become well educated in how to properly manage parks. The park business is NOT a cousin to apartments, so before you run in with that mindset, understand those differences.

Understand the differences between TOH & POH, the various utility solutions that exist at parks, and materials used in underground infrastructure. 

Understand the different regulatory/legal provisions and licensing requirements that exist with MHPs that do not exist in other asset classes. 

MHPs can be the most stable, recession resilient investment you ever make, but they require specialized knowledge in a host of areas that are not required in other investments.

All the best, 

Jack