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!!