Understanding Mobile Parks (check this deal)

[Joe Cassandra]

I've only flipped and rented SFH but stumbled on this tiny mobile home park in an area we want to get aggressive investing in the area it is in.

11 lots: 

- 9 MBH (100% occupied)

- 1 single family "stick" house (occupied)

- 1 vacant lot

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- Utilities all paid to county and by tenants

- 3 of the MBH are park-owned and currently under 'rent-to-own' agreements

- Age: half are mid 90's to 2000's, other half mid 80's

- Half have been renovated in past months

- No paved driveway roads leading to homes, just on side road. Some have dirt roads to get to their MBH

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Numbers: 

- Cap rate (including rent to own income) is about 14%

- Expenses were only about 15% of gross rents in 2018 - 2019

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What would you evaluate? 

They say they'll provide tax returns proving rent collections. Most of their 'rent to own' park-owned MH usually don't work out. 2-3 of the tenants have been there for years. 

Vacant lot is zoned for multi. 

How do you approach looking through a deal? 

I can analyze MF and SFH all day...but MBH, I feel like i"m missing something