Trailer Park Due Diligence

[Philip Arthurs]

I'm looking at purchasing a mobile home park with 30 pads - 26 of which are empty.  Lot rent is $150/mo and includes water and garbage (cost of water/garbage is about $40/month).  The park needs a lot of clean-up work (probably about $10-20K worth.  All are on city sewer except for one on septic.  I was thinking about hiring a company to maintain the common areas and build a nice sign at the entrance.  For marketing, I was thinking about advertising 3 free months of lot rent to entice people to move their mobile home to the park.  Management fee would be 10% but I'm going to try to negotiate it to 5% for just collecting rent and then a fee for each applicant for credit and background checks.  Any advice would be most helpful here.  I'm going to visit the property soon and want to have a good due diligence checklist.  Thanks and God bless!!

[Ryan Groene]

What is the water? city im assuming based on your comments.  Where is the park located?  

If this park is not close to you..it will be harder work to do this type of project as it can require boots on the ground to infill a project liek this.

What is the price you are paying...your basically just paying for dirt at this point