Newbie MH Investor

[Chris Jones]

I've been throwing around the idea of investing in a mobile home park for some time now, but wanted to wait on an opportunity that I thought was appropriate. A local MH park has come up for sale and I have some interest. However, I'm not well-versed on the in's and out's of making such investment.

Here are some details for the park I am interested in: 48 sites available, currently 40% occupancy, rents for $150 per pad, generally made up of older homes, park is in need of some TLC, approximately 40 miles from my current location, and asking price is $140,000.

Can any of you provide any advice for steps I need to take as a beginner before investing in this property?

[David T.]

Chris,

First of all congratulations on your choice of Investment. the MH business gives a solid investment return, but you need to understand it is a solid hands on business.

The deal you're looking at sounds good and will be good if you can raise occupancy to 90% and higher, so the first thing you do is establish that there is a local market for this product.

Your next move here is to find a CPA who is familiar with the MH business and can help you build a solid redevelopment plan around the product that gives you what you want from it.

I'm a firm believer that all first time investors should find a local partner/mentor with loads of product experience who can help you get your deal where it should be much quicker.

Best of luck with it!