Small Mobile Home Park

[Vicky Blacknall]

Hey All,

I love this site. The generosity of pros is astounding. Plus, I like the different opinions that provide different things to think about.

Hubby and I have been looking and working on purchasing a small MHP+ for 6 months. Seems the RE agent is rather, shall I say, um, an air head. So, after we submitted an intent to buy, which was flatly refused with no negotiation, we found a commercial RE agent to represent us. He is wonderful! He was able to get information we couldn't. That plus what we dug up, gave us a good picture of what is going on with the place. Plus, we continue to pick up info from locals.

There are 8 pads and all are filled. But wait before you think that's good. Only 4 are paying tenants - 2 pay for the lot only and 2 for MH and lot. The others are not rentable and need various degrees of rehabbing.

There are two pieces of property involved in this deal. The larger acreage has an older abandoned restaurant and a 5 room + manager's quarters motel with 2 squatters.

The whole place is trashed and will take some time and SE to just clean up. What helps to make the deal sweet is the Public Service Electric Power Plant is in this town and they do a huge amount of contract work and need housing. Plus the town is rent deficient. In addition, it is the next town in line to grow from a bursting metropolitan area. (Lots of people are already migrating.)

So, here are the numbers. $1200. income on the 4 Mobiles/Lots. Potential for Mobile Home Park with other 4 mobiles rehabbed and rented: $3600.00 There is room for 4 more pad with easy utility access. We will likely put some cash into the Restaurant and Motel buildings, (both sound) after getting the Park up and running. We are looking at selling both or possibly renting out. The seller is crazy and is asking $210k. We are contracting for $150k tops.

Any advice or input will be greatly appreciated.