Mobile Home Park in Small Town

[Nate Culkin]

I am looking at a mobile home park in rural Wisconsin, right now it is at around 50% occupation and priced accordingly.  The goal would be to buy it and raise its occupancy as a project.  What I'm wondering though, is how doable this is when the park is located in a town with a population of only 1,300?  I know that the guys from Mobile Home Park University mention that they only focus on parks in towns with much larger populations.

Has anyone had any experience buying a MHP in a town that small?  The park we are looking at is also right next to Lake Winnebago, so another thing I am wondering is if this place may be a viable option for someone that wants a cheap second home near a lake:  Has anyone ever had mobile home park tenants that own the place a second home?  

[Celeste Fackrell]

I own a small park in a small town.   I bought it to "teach" myself everything I have learned through bigger pockets and other forums before I take my learning and scale up.

I made a point of buying a not-so-good park in a small town with an adequate economy.  Just an average economy, but small, not a lot of growth, and not a lot of prospects.  The park was cash-flowing when I bought it but just barely.  I bought it cheap, and figured I could add value.

So, what have I learned:  

A)  My theory is working thus far (have only owned it for 7 months).  I am slowly making the park a better place, both the live in and for the city.  The city is aware of me, and what I intend because I made a point before I purchased the park to go to them and tell them my intentions.  Like everybody, they want their town to be as nice as possible; I am going to do my part.  What was an eye-sore is slowly turning into just another place to live in town; not a ghetto.  In addition, the water department, electric company, sewer department, other landlords all know everybody.  It is pretty easy to find out how good a prospective tenant has been in the past...and what you can count on in the future.

B)  Simple is best.  Don't get to fancy with your deals, ideas, or options for prospective tenants.  They want a place to live that they don't have to worry about.  If you give them a nice place, for a reasonable price, your trailers will fill up as fast as other places.  Good value is always attractive as long as there is a consistent need for housing.

C)  PETS ruin mobile homes; charge a steep premium for pets.  I.E., the cost of replacement flooring every 6 months to a year added to the standard rent; especially cats.

D)  Be consistent.  EVERYBODY has a story. Listen, but don't let the stories dictate your next deal.  Pay attention to your business plan and be consistent with your direction.  That is not to say that you can't modify your plan if the same story keeps repeating itself.  For example, in my little town, I have had to finance the deposit over for several tenants.  They are good tenants, they pay every month, they just don't have several hundred dollars to put down for whatever reason.  Financing deposits is not how I started but how I landed some good tenants.

E)  Get rid of the bad tenants immediately.  Show the good tenants you intend to make the place better and they will help you.

F)  I would buy a park in a small town again.  I won't get rich, but I will have a nice small, steady, income for as long as I want.  My value added prospect is slowly working.

I can't afford a large park so this is all the fun I can have for now!