Due Diligence when considering purchasing a mobile home park???

[Tom Martinez]

From a new MH inverstor, I am looking for some good methods for due diligence when considering the purchase of a mobile home park. I pasted on an opportunity recently because I really didnt't know how to go about verifying all of the items I would need to check before making such a large investment. Having that said, I am not sure even what to look into.

Is there any seasoned investors out there that can give us new guys some insight into this side of the mh investing?

Could you list what you check, how you analyze, how you inspect, how you value, and of course anything else that you do that helps to make an informed and educated decision when considering buying a park.

Thanks for any and all insights!

[Bill Gulley]

At the top of your due diligence list should be looking at the type and condition of the sewage system. Rural or outside of town MH parks often have septics or a holding pond. There are environmental issues in every state about the concentration of these systems. While a system that is operating efficiently might be grandfathered, the standards can change. When the system needs repair or breaks down you mauy need to improve it and eventually, you can face very expensive repairs, more so than what the rental unit is worth! In my area, there are a few MH parks on sewer, but most are not and they are facing these concerns. It's a big deal.