Mobile Home Park - Rural Area - Non-Conforming

[Aline Zamora]

Hi folks, I'm analyzing a Mobile Home Park with 10 Acres, 11 mobile homes. The property is non-conforming as to land use and zoning now and cannot have more mobile homes or replace the old ones. The deal still with good cap rate, I like the area but I was thinking of rezoning in 3 years and build houses or replace the mobile homes. Any suggestion? Any idea can help me to analyze this deal from a different angle? 

Any problem to remove the mobile home tenants or I should do like regular tenants?

[Rachel H.]

@Aline Zamora You're kind of limited to what you can do with the land as it stands now. So yes, if you have plans for the future to either build houses or replace the mobile homes you'll need to rezone which can take time. Regarding the mobile home tenants, you'll have to figure out your time frame and decide when you want to do the change. When it comes to renting, some landlords either to month-to-month or put their mobile home tenants on yearly leases. It just depends on the individual and their comfort level. Good luck with the deal!