Your MHP buying criteria?

[Andy Brohard]

Hey all,

My partners and I have been bird dogging parks for a little while now. So far nothing to hit Brandon's specifics although we've been close. Curious to know what other buyers criteria looks like for buying MHPs. We have a few parks that the owners would sell but need the right fit for a buyer. Will you buy with sewer treatment? Well water? How many pads are you looking for? Vacancy, how much infill etc. LMK!  

[Jason Graves]

@Andy Brohard

I’m looking for parks with 75-150 pads.

We have several criteria that we are looking for:

* B and C grade parks that have upside in lot rent, deferred maintenance, infills ok.

* Turn key parks don't often give us much to work with and it's hard to get the math to work to pay investors back

* If we can't create value by the 3 above, is there another obvious growth area (mini storage?)?

* In towns within 20 miles of pop 20k and higher

* Smaller towns need to have strong population growth rates the past 10-20 years

* Median home values in the town/area absolute minimum of $100k, ideally north of $125k

* If median is below $100k, the clientele we want buying our new $50k mobile home is also a client for a $70k stick built home

* 50-150 pads if at all possible, but will look at others if we can get the math to work

* Purchasing at the highest possible cap rate, but really want to start at 10%. 

We like, but don't have to have:

* Near a major college/university (this drives rent rates in town)

* State Capitol (pretty rare for a state capitol to move or shut down, right?)

Knock out punches:

* Lagoon sewage systems.  We won't even look at a park on a lagoon due to the EPA risk, which could be in the hundreds of thousands

We are wary of, but would consider the following if enough other conditions are right:

* Septic

* Well water

States we are looking hard at:

* Minnesota, South Dakota, North Dakota, Nebraska, Kansas, Missouri, Iowa, Wisconsin

Some of the non-major DMAs that seem to make sense for us to target (and of course anything inside 

Jason’s picks

* San Antonio, TX

* Tucson, AZ

* Rollie NC

* Provo, UT

* Wichita, KS

* Omaha, NE

* Kansas City, MO and KS

* Des Moines, IA

* Cedar Rapids, IA

* Ames, IA

* Sioux Falls, SD

* Rapid City, SD

* Fargo, ND

* Grand Forks, ND

* Green Bay, WI

* Madison, WI

* Duluth, MN

* St Cloud, MN

* Mankato, MN

Jason Graves

Real Estate CashFlow

htsawgrasscapitalpartners.com