Developing and Starting Small

[Wesley Oaks]

I've come across several sources suggesting that purchasing an established Mobile Home Park (MHP) might be a more advantageous approach than constructing a new one. However, my investable funds range between $100,000 and $150,000. From my research, this budget appears to be insufficient for acquiring most MHPs currently on the market. Moreover, due to my irregular income, obtaining financing isn't a viable option for me.

Considering the above constraints, my plan involves a different strategy tailored to a specific area in Alabama. This region is well-suited for MHPs and offers unrestricted land. My idea is to start small by purchasing between 2 to 5 acres of land. I intend to gradually develop the park by acquiring used mobile homes for around $10,000 each, relocating them to the site, and performing minor renovations.

To make the venture sustainable, I'm considering implementing a rent-to-own model, with the ultimate goal of transitioning to a Tenant Owned Homes (TOHs) setup with $300 lot rent. This endeavor would mark my first foray into this type of investment.

What pitfalls should I be aware of?

[Rachel H.]

@Wesley Oaks If funds are limited, you might consider taking on a partner. I've seen this done over and over again in the mobile home park investing space. 

Usually, one party has more funds and the other party has the experience and time to be more hands on with the business. 

Hope that helps!