Two Mobile Home Park Deals - Buy or Not??

[Michael Baradell]

Hey BP! I have two mobile home parks that I am analyzing right now and I am curious on your thoughts. 

First Park: Brand new development with 18 pads. All city utilities in a good area. There are no mobile homes currently on the property, so this adds another huge element. Local lot rents are around $350. New asphalt roads. Asking price is $700K. Cap rate in my area is around 7.5 to 8 depending on location. 

Second Park: Much larger and already established. 108 Lots mixed with 61 RV spots (brand new), one triplex, two cabins, and the rest mobile homes (15 park owned). City utilities, $716K annual rents. List price is $3.5MM

In both of these areas, there is medium to strong housing markets and both are on the outskirts of major cities. Population and jobs are very solid.