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?