Develop a Mobile Home Park Community in San Antonio TX?

Question

Is anyone interested in buying/developing a mobile home park community on a 26 acre lot in San Antonio TX? Has anyone done something like this in the recent years in TX?

Rich Ferradino · Answer

@Christina Larios You can buy a lot that's .2 acres in the city and put a MH on it but as @Rachel H. mentioned it needs to be zoned. I have 4 acres in the city that is zoned MH (mobile home) just outside 410 that I can put mobile homes on. There are smaller .2 acre mobile home lots across the street, which I think they had a lot forsale,  and 2 MHPs adjacent to it as well.

Rich Ferradino · Answer

@Mauricio Ramos I just completed a rehab on a MHP in Poteet. One of the hardest things is the carrying costs while getting it developed.

Where is the land located?

Rich Ferradino · Answer

@Sonia Spangenberg Have you spoke to the city/county to see if they will increase the number of lots? 11 acres for 25 lots is very rural. At that rate you could just re-plat the land and make 20ish, .5 acre lots assuming you have enough frontage or could put in a private road. In my area for 25 lots, each having their own tank it's about $4k/septic tank+drain field so that would be about $100k, and I'm assuming a well would be about $30-$50k. I was charged $25k to bring I new electrical, and brought in more gravel since we didn't have to asphalt the road. With my costs stated above, my costs were $250k for the infrastructure, clean up, bringing in and fixing mobile homes, moving incentives, etc.

Here is a before and after video of the park we transformed.

Before:

https://www.youtube.com/watch?v=_VPnALJXkOQ&t=220s

After:

https://www.youtube.com/watch?v=NKxL57jI0CM

If let me know you have any questions.

Rich Ferradino · Answer

@Christina Larios 410 and sulpher springs road off of south cross ranch road. If I can raise enough enough capital I'll make it a park, if not I'll split the 4 acres into 4, 1 acre lots and sell the lots off. To limit expense SAWS charges $2-3k to tap into the water and sewer so if you buy a lot just make sure you take infrastructure costs into consideration if it's not already there.

Rich Ferradino · Answer

@Eddie Trefger The all in rehab is about $250k which includes rehabbing some older MHs. There were some issues with the septic tank and lines but we didn't have to replace them all. The SFR was about 20-25k rehab. Which included demoing the back porch, new HVAC, new electrical, re-sheet rock with tape texture and paint, kitchen island and counters.

Eddie Trefger · Answer

@Rich Ferradino

I looked at buying that park also.  Glad to see that it is coming along for you.  I figured at least $300K+ to get it up and running.  Did you end up having to replace all the septic tanks and lines?  I knew the electrical would be costly as well.  How much are you having to put into the SFR house for rehab costs?  I listened to your podcast with Kevin/Charles on the Mobile Home Park Academy.

Sonia Spangenberg · Answer

Thanks Rich.  I definitely will be doing all the inspections and already have a price of $650 for inspections and engineering plans from one contractor.   I am still waiting for a call back from the county health dept. environmental guy. I did finally get my records from the Co. health dept on the property and noted that the license to operate the well and septic was revoked in 2015 due to repeated failures to update after a court case.  No response since from the owner in county records.  I am operating on the assumption that I will be starting from scratch as far as well and septic go until I get the inspection done and report from the engineer.  Once I get a chance to talk with the county health / environmental department, I will form my decision on making an offer, and if so, what it will be.  I am pretty sure I will be offering less than what the raw land would be because it will require so much clean up, and even if it is grandfathered for lots, the lots cannot be used as such until well and septic are upgraded.  Cost would be like starting from scratch plus clean up.  There is a good chance they won't accept the offer at first, but I can wait.  I don't have to have this deal.

Rich Ferradino · Answer

@Sonia Spangenberg If the city is giving you issues, you could ask them if you gave them an environmental report showing that the land is safe and added septics is doable and won't harm the water table that might get them to calm down.

For septic it all depends on the type of soil content and how fast the soil can absorb. Typically each home will have there own tank,  and the difference would be is if they would share a leach field. Just depends on how old the system is, what your engineer recommends, and what your county/state will allow.

I wouldn't rely on the neighbors that the well pump is the only problem. Definitely get it inspected, and ask them to see what the remaining life span is, and any upcoming maintenance they foresee. If you're going to dump over $300k into a project you shouldn't cheap out and not get inspections and engineers. They could save you from headaches in the future, or you'll at least have a better picture of what you're getting into.

Sonia Spangenberg · Answer

Rich, thanks for sharing.  Yes this park is a rural setting.  That's one of the things I liked about it. Still reasonably close to major commuter route though.  Lots of green space.  Thanks for the suggestion to check into increasing the # of lots.  I know that the 40 yr history of the previous owner's failure to update the septic system may have factored into them being told they could not increase the number of lots.  I will check into that.  That alone could make the numbers work better.  For the septic, do you tend to do individual septic tanks for each MH or do you do a community system?  What factors do you look at for that decision?   What are Pro's and Con's?  With larger lots that kinda sounds more doable.  I'm sure that may vary per local jurisdictions or maybe even per engineer.  If that can work for me that will really save because it sounds cheaper than a community system.  That option was not discussed when I spoke with the contractors.  Another good question for me to ask.  In talking with the neighbors it sounded like the well issue was mostly the pump so I may do okay with that cost.  Will not find out until I get further down the road on this opportunity.  If I can truly keep my infrastructure costs closer to $300K rather than $500K I can make this work.  My costs are higher in my location than yours but you have given me some food for thought on ways to reduce costs and increase income.  Thanks for your suggestions.

Christina Larios · Answer

Thanks @Rachel H. I've been going back and forth on the zoning map and vacant lots but no luck so far. I guess what I was really wondering was if there was any loophole to the zoning and putting down a manufactured home.  =)

@Rich Ferradino - where on the 410 is this? thanks!

Develop a Mobile Home Park Community in San Antonio TX?

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