Mobile Home Park Deal- Analysis

[Chris Risi]

Hi all,

I'm looking at an acre lot that is zone for mobile homes. Currently there are 2 homes on there. Purchase price (asking) is $280k. There are currently 2 septic tanks on there.

I'm wondering how do I analyze this deal? What are the main things mobile home park investors look for?

Seller is willing to do financing at 6% amortized for 30 years as well, if this helps.

Any help is much appreciated!

[Rachel H.]

@Chris Risi If the lot is already developed and the mobile homes are already there, then you're looking at fix-up costs and any infrastructure costs you need to do. It's best to look at the homes to see if you want to fix them up (keep them) or move them off the lot and bring in newer homes. If you go this route, be sure you check with your local zoning office to see what you can and can't do when moving mobile homes onto this lot. 

If you need help with the numbers, you may want to talk to other mobile home park managers and/or owners. You may also want to talk with local mobile home dealerships. Both are good sources of information and may send you referrals down the road. 

Hope that helps. Best of luck with the deal!