MHP Turnaround - Itemized Costs

[Stryker Brown]

I am currently underwriting a deal I’m looking at and need some guidance on what specific items/work is going to cost. Obviously this is different everywhere but rough estimates and ranges are welcome. It’s a 20+ unit park in Georgia and needs some love but is in a great market and has good infrastructure. (City water/sewer/electric) Any insight on some costs to project would be appreciated

Below is the scope of work:

- I need to bring in 12 homes and plan to do so over the next 2 years (10k per home installed and rehabbed) I think I can come in lower than this but I’m being conservative.

- run a top coat of asphalt over the existing road. Not sure if a seal coat would work or not.

- signage and landscaping

- tree removal (2-3 days work)

- install gravel driveways for pads

- install 4-5 power/electrical hookups

- 21 submeters for the water but would be spread out over time with the homes

Any other costs I may be missing?

[Chris Ebert]

@Stryker Brown, I can't speak to exact costs of these items. You'll need to get quotes from service providers. The one question I have is around bringing in 12 homes. It sounds like you are bringing in used homes. I would be shocked if you are able to buy a home, set it up and rehab for close to $10,000. From a pure cost and opportunity cost, I would recommend getting your MH dealers license in GA and going through a new home program like 21st CASH or Cavco. Getting your MH dealers license also allows you to legally sell the homes. I don't know GA's laws but in NC you can only sell a max of 2 homes before you need your dealers license. I hope this helps.