Akron, OH · Member since 2012 · 77 posts · 2 votes
SFR/2-4 unit investor looking to broaden his horizons...and profits!!
I have some questions about mobile home parks. I *might* also try some Lonnie deals, but mainly, I want the parks, not the MH's themselves. But if a property has a few park-owned ones, fine.
1. I work full time. Are there property management companies that do MH parks? What do they charge?
2. Do most institutional commercial lenders do MH park loans under the same general guidelines?
3. Pros/cons of having little or no park-owned homes vs. having a large number.
4. What's the best way to increase occupancy if there is a low occupancy number?
5. What is a min occupancy % for a bank to approve a loan?
6. What is a typical expense ratio presuming no or few park-owned homes?
Real Estate Broker · Orlando, FL · Member since 2008 · 181 posts · 66 votes
14y
1. Find one that already has management in place
2. Yes banks will lend on MHP's, it depends on your credit and the validity of income from the MHP.
3. I would recommend buying a park where the majority are not park owned. Just collect the lot rent and charge less.
4. No idea, better advertising? Improve the looks / tenants in the park
5. varies
6. I would say around 30-40 depending on a million things i.e. pools, rec rooms, etc
Akron, OH · Member since 2012 · 77 posts · 2 votes
14y
What about just hiring a current park resident who seems responsible and capable to manage the park for me in exchange for free lot rent or something? If the lots rent for $250/mo (typical in OH), then we can basically say he's working for me 4 hours a week max (probably not that much in most parks)...
If I did this, legally speaking, would I be obligated to pay him a salary and/or FICA, etc?? If I only pay him in "free rent" how do I cover that accountingwise, etc?? Or do I pay him a tiny amount as a 1099?
I wouldn't look for someone who is unemployed, I'd probably opt to find someone with another source of income, preferably a homemaker or retiree or something, but wasn't sure of the legal implication of this from an employer/employee (or 1099 contractor) point of view.
Akron, OH · Member since 2012 · 77 posts · 2 votes
14y
Here's a thought to increase occupancy...has anyone tried this?
Offer an incentive plan. Buy the park and say "OK, due to some long overdue maintenance I am doing, I will be increasing your lot rents from $190 per month to $205 per month.
However, I am making an offer to all of you as well. Anyone who can get a friend, family member, coworker, etc. to move in here and bring their home to one of our empty pads, gets a free months lot rent when they move in, and another free month if they're here a year."
Spending $400 to get a probable long-term temant seems worth it to me...right?