New Mobile Home Park Owner

[Joseph Gonzales]

Hey Bigger Pockets Family,

My partner and I are preparing to close this week on a small mobile home park in Midland, TX. This will be a first for us both and I wanted to get your feedback and experience in owning and running a MHP. It has 23 lots, and is mixed with 9 RV spots.The park is pretty run down, as the previous owner is an older gentleman and hasn't even raised lot rent for about 5 years. Lot rent is about 100% under market rate. All Mobile Homes are owned by the respective tenants, although 2 are being sublet, and not a single tenant is under any type of lease agreement. There is also a small efficiency apartment on the property that comes with the sale. We don't want to hire a property management company, as we would rather find someone willing to live rent free on the property and collect rent, and keep up the grounds. 

Currently 85% occupied.

1. We have plans to put about 50k in repairs, as well as use a portion of that 50k to put 1-2 newer mobile mobile homes on the property. Items on the agenda are:
2. - pave road going through property
3. - light landscape work
4. - build perimeter fence 
5. - clean debris around park
6. - set actual gravel pads where RV's will go
7. - acquire newer MH's at wholesale price to owner finance to new tenants
8. - add extra security lighting and cameras to property 

1. Any and all advice is welcome!

[Brenden Mitchum]

Hey @Joseph Gonzales

Congrats on the acquisition!

I would at least double the budget. It might be possible, if the park is really tiny, to do all of the renovations you mentioned for around $50k. However, bringing in two newer homes alone will cost you about that much. Paving could easily cost that much, depending on the size of the park.

Please, do correct me if I am wrong here and you all have already gotten quotes on everything (should have during DD) and it comes out to $50k.

Happy to chat further about MHP anytime. Just shoot me a message!