Value of a 100% vacant mobile home park

[Mike Stock]

I'm reaching out for some advice/thoughts with regard to purchasing empty mobile home parks. I'm looking at a 92 lot 100% vacant park, which has city water/sewer, no gas (but gas could be run from the street, and needs some minor road work. Comps for other lots in the area run $225. Questions: 1. How much would you pay per empty lot? 2. Will a company, such as Clayton Homes, work with a park owner to fill up the lots? If so, what typical deals are common and how much would I realistically have to spend? 3. How long would it take to stabilize a park like this? Thanks all! Mike

[Jeffrey H.]

You need to first check whether the city will continue to allow this property to operate as a MHP.  Many times after 12 or 18 months the city will revoke the applicable zoning and not allow continuation.

Valuation will probably comps based for land since there is zero business value.  You will need to negotiate any added value for improvements.

Using the CASH program may help you fill vacant lots - they will need to evaluate the park and your ability to personally guarantee such a large number of homes.

You need to run a test advertisement to get a handle on demand for homes.  This will help you establish how quickly you can fill the homes you bring in.

Usually when a park this big is empty there are bigger factors in play and probably not a good idea, but without more info cannot steer you any better.  Buyer beware.