Trash Heap mobile home park

[Chase Olson]

There is a MHP in my town for sale that looks as if every mobile home in it, is competing to see who can cook the most meth.

what sucks is that its actually in a decent part of town. Its currently for sale at a 7 cap and the owner is claiming the rents are far beyond what you would believe just by looking at it. I am friends with someone who lives across the street from the park who says that there are questionable people who come and go at all hours of the day and night.

Problem tenants aside i know i can make this into a decent park, but not at the selling price. Any tips on how to negotiate this with the owner. 

[Travis Rogers]

I agree with @Rachel H. and @Jay Hinrichs. Personally I stay away from those type of tenants and rentals. I learned watching my dad with a triplex in a bad area, he spent more time trying to get paid a small amount for each unit and then taking care of them after one would get trashed. High maintenance. My preference is above mid, to high-end rentals in good school districts. You get paid more per unit, and tenants seem to be respectful most of the time, they are truly passive. That said, if I could find a good MFH park, in a decent area, that is a great option. Dealing with them in bad shape is tough unless you can change it to a nicer park. In this situation that would be tough I would think. Maybe it could be done, but the payoff wouldn't be worth the time, cost, and effort to me (just my opinion). Good deals on MFH parks are hard to come by right now, they are a hot commodity that will continue to do well if times turn, which seems likely in the near future. They also can't be built so there are a limited amount making them harder to come by, increasing the sales price. Therefore, they're in a sellers market. Again, just my opinion, I don't want to be negative, but also would hate to see someone spend a lot of what they probably worked hard for to realize there may have been a better deal out there. All the best regardless!