Bid Accepted! Please help!

[Adam Philpot]

Evening BP Family, I need you help. I just want a bid on my first mobile home park. I got it for 415k just outside Huntsville in Toney,AL. Here is what I know: 33 pads all renter owned 5 could still be developed $150 a month All separately metered and pay their own utilities They do have septic tanks - Are their issues with that? What else am I missing? Where do a majority of upkeep cost go? I’m really excited but REALLY nervous about what I don’t know about mobile home investing. Please help. It seems like a good deal but what am I forgetting????

[Bill F.]

@Adam Philpot Congrats on getting a park under contract. 

Did you find the park through a broker or on your own? 

Start here. You'll want to get three to five years of financial statements. Rent rolls, utility maintenance contracts, leases. If everything checks out you can move onto the physical inspection of the park.

Arrange for a Phase I inspection and to have each of the septic systems inspected. Are they one system per home or a series of group systems? 

Talk with the town/county/state board of health (or who every regulates septic system in your area) to see what the status of your septic and to see what regulations have changed since yours was installed. If the results are less than stellar for your system, you may think about getting a quote to install a new system to get an idea of replacement cost. 

Have survey done to know what you own.

Check out Jefferson Lilly's Podcast episodes 4&5 for more specifics about off and onsite DD.