Mobile Home Park Virginia Seeking Guidance

[Zack G.]

I have a piece of land that i own with 50 small individual lots. The property is about 30 minutes from Harrisonburg VA, but definitely outside of the city a bit. The lots are zoned to accept singlewides. There is town water/sewer hookups available for about $10k a lot. There is high speed internet available, and its 4 minutes to the major highway and local supermarkets.

I am trying to evaluate the feasibility/profitability of this project. I know folks warn against starting MHPs, but is a MHP on town/water sewer with high speed internet a different story?

When i do a rough NOI calculation at $425 for lot rent, the project would appear to be worth around $2mil after completion (how long will that take? years presumably?), and my all in would be around 1.5m. I can take that the dev. costs on a per lot basis, which will help, so i dont need to spend $500k upfront the on water sewer hookups. PLus, i can always bulldoze the lots on 30 years and sell them for homesites.

What am i missing? Please help SFH investor with no MHP experience.