Mobile Home / Septic Tank Question

[John White]

I'm evaluating two mobile home parks with about 70 pads between the two. Both properties have separate electric & water meters but the property is on septic systems. 

I'm not familiar with septic systems. What are the costs associated with them? 

The rent is about $150/pad so I want to make sure I have a good handle on all the costs.

A private sewer is being installed in the area, would it make since to connect or just maintain the septic systems?

[Jim Johnson]

Septic tanks are not the real issue here- it is the leach fields that can be problematic. 

When you break the septic system down here is how it works.

Just off your home is a large (probably concrete) tank. This tank will be connected one home, or it could be connected to several homes.

As waste fills this tank the waste breaks down into more liquid and solid forms. For lack of a better term, they are called 'heavy solids'. When you pump your tank, it is the heavy solids you are removing, and also all of the 'bugs' that break down the waste. This is why people need to add things like probiotics. 

The problem comes when a leach field fails. When that happens you need to replace it and now your into local, state and federal health laws. If you are restricted and can not replace a new leach field into your old leach fields location- you need more dirt. If your park is tight- this can be a HUGE problem. I have an acquaintance in Colorado that had this problem, and his 100 space park is not vacant because the laws changed for replacing his leach field, and the system the EPA mandated was about $800,000 after the 18 months it would take to get approved. He was pulling in tankers to haul away the waste until he got the park shut down. 

So- If I was the principal I would look at a few things. How was it built, how well does it operate, how was it maintained. I am looking at the leach field and the tanks. Then- what if. What if I had to replace a leach field, what if I had to replace all of the leach fields. What is the cost and, what is the local, state and federal permitting process and timelines.

I will leave you all with a story...

Several years a go I had a park under contract in Texas. I went to do the onsite due diligence and while walking through I noted a home that had water running on the ground from the rear of the home. I asked the manager and she said, after walking over and putting her hand under the water, not to worry- it was just someone showering. I told her you can not just run water on the ground, and if I got the park that would need to be hooked back into the septic system. The manager told me the owner of the park had required all of the home disconnect all waste water except toilets from the septic because the leach fields were failing. Actually- they had fully failed. The owner had taken the lines from the septic tanks and just dug above ground trenches and was letting the waste run onto the ground. I had this park under contract at a 20 CAP. It was going to cash flow over 100% cash on cash the first year with assumable owner financing for the term of the loan. At this point I called the listing real estate agent and told him they could not give me the park for zero down because of the liability. If someone got sick from the sewage in the open trenches... There was toilet paper that was wet and dried up just sitting in these trenches. And kids playing not 20 feet away. It was amazing. Anyway- the agent actually called back and offered me the park at zero down if I would take it. I did not. I am not sure what ever happened to the park but I knew if I wanted to put in a new system I would need an engineer. I would also need the state to visit the site and approve the project. I really did not want the headaches or the risk. The only option for this park was to put in new leach fields, and I was sure if the heath department visited the park, they would shut it down on the spot.

That is my story- be careful with private systems. Even great deals are not worth some risks.