Need Help Advice on this MHP Deal (septic)

[John Mark Pollard]

I need some help in the due diligence piece of this deal. I have found a mobile home park, it is 20 pads, and all of the pads are rented, and the rent has been the same for over two years. The beauty of this deal to me is that all of the trailers are owned by the tenants the park does NOT own any of them. Even if I kept the lot rent the same this deal makes Financial sense. However, I will most likely increase lot rents marginally.

My biggest concern right now is the single septic system that all of the trailers are utilizing. I have watched numerous podcasts, numerous YouTube videos trying to educate myself on what to look for. I watched the do's and don'ts videos but I still just don't feel comfortable about the septic. Is the septic really an instant deal breaker? How do I get a MHP septic adequately inspected? What are the warning signs to look for what is the process any help at all would be greatly appreciated? Because I feel like if I keep teetering back and forth on this deal I'm going to lose my opportunity for a good investment.

[Joshua Diaz]

Well I would say, as part of the due diligence process, definitely take a close look at that septic and get a process opinion on how much it can really support.  I have a property with a septic tank and I have had no issues with it so I wouldn’t call it a deal breaker, but I would make darn sure it can handle the loads it’s taking in.