Dealing with Septic at a Mobile Home Park

[Nick Cucci]

Hey BP! Happy 2018! 

I decided 2018 will be the year I jump in to larger multifamily deals. I'm getting very close to having a mobile home park in Ohio tied up, but my ignorance regarding septics and proper handling is almost scaring me out of the deal. Hoping someone can share experiences as I hurry up to get smart on the mgmt needs when it comes to dealing with a park.   

There are 20+ pads (all seller owned) that tie into one septic system that was replaced 6 years ago. They pay about 15k annually for Ohio EPA compliance and about 3k for water testing. 

Does anyone have any stories they can share on what to look out for regarding that component of mobile home park investing? I don't want to scare myself out of the deal, but I also don't know what I don't know yet regarding water testing and septic maintenance with the EPA. Nightmare or manageable? How bad can it get and how hands on do you need to be? Tons of EPA paperwork or minimal? I'm also going to be out of state so will need a strong partner who is boots on the ground helping me with this one if we go for it. If that is anyone reading this, please reach out! I am in need of good partners in Ohio in general.

Any insights are much appreciated! Thanks as always to the BP community! 

Nick

[Belinda Lopez]

No need to be afraid of Well & Septic systems in MHPs.  Get all the records you can from the owner including the vendor info.  Become familiar with your state and local regs and keep a good reserve fund to deal with any unexpected repairs or emergencies.  Septic systems have been around  for centuries and they work - as long as they are kept in good condition.  

Is it an aerobic or spray system?  as long as it's not a lagoon system you should be fine.  $15k is really high for compliance - what does that cover?