Mobile Home Park Opportunity for me. Please advise.

[Jack May]

I just saw a mobile home park come available in my city of Louisville, Ky by owner.  I’ve never invested in a mobile home park but I’m intrigued. The owners are selling for health reasons. They have owned it for twenty or thirty years. I would put the park in the C to C-  area of town. They own the trailers (18 of them that are at least 20 years old) and tell me that 4 really need to be replaced.  They additionally have a garage with a loft above it. They sign a six month lease with the tenants and they charge $150 to $170 a week. I think they pay for the utilities but I don’t have the numbers yet.  They are asking $250k.  I am a real estate broker and a property manager of 20+ years. Should I pursue this or run.  Thanks for the help.

[David D'Errico]

you need to gather a lot more info .......first why such a low occupancy?

gross income? average lot rent in other parks

other expenses? taxes , insurance, utilities...

condition of the other 14 homes -we know 4 need to be replaced

decide if you want to be a park that owns the mobiles homes..... 

i believe some mobile home park owner just want to be responsible for the lot rent....not the units themselves which will include lots of repair cost.......unless you write up the leases as a lease to own option and put the cost back on the the "new owner"