Anyone in Mobile Home Parks?

[Collin Bryston Adams]

Looking to build a few on some cheap land in Texas. Trying to understand the business better. 

[Brad Rehfeldt]

You would have to check with city/county to see what density, setbacks, etc. they would require for a new park development. Most zoning authorities don't like mobile home parks due to their reputation of being unkept and filled with crime (even though that tends to be an over generalization). If you get all the approval to move forward, I think the play would be to bring in nice, affordable, used homes. You then sell them as quickly as possible, whether that be through CFD type arrangement, or the buyer brings financing (not as common). Once homes are sold, you collect lot rent in perpetuity with low annual maintenance expenses. Rule of thumb: owning mobile homes and renting them out, you should budget for 50-60%+ of rent going to maintenance expense. If you own just the lot, the budgeted expenses should be somewhere in the 30% of rental income rage.

You should checkout Mobile Home Park University (Frank Rolfes website). There’s an enormous amount of information and forums dedicated to your exact question.