Vacant mobile home park

[Autumn Rankin]

I found a mobile home park in a growing town that is vacant. 5 acres- 16 established sites. Needs new water lines and possible sewer work. Potential for 10-15 more sites the way it’s laid out. It meets Jefferson Lilly’s requirements for a park. I spoke with the city manager and he was encouraging on having the park. They’re asking $219,000. Any advice?

[Thomas S.]

Since it has zero income value it is only worth the value of land in the area. It has no value as a park. You are likely going to need about 200K to get it operational and it will take many years before you have any significant income. You will need very deep pockets to start up a park.

Do you know what lot rents are in the area. Are there home byers with the money to bring in homes or are you going to have to finance the homes yourself and rent them out.

You may want to consider a lease option since it is unlikely you will be able to get financing.