trailer park purchase

[Michael Miner]

Investment Info:

Mobile home buy & hold investment.

Purchase price: $140,000
Cash invested: $20,000

This purchase is a trailer park and a commercial store front located next to the Griffiss and Technology Park which has seen significant growth since this purchase.

What made you interested in investing in this type of deal?

Location and cash flow were a large factor. I also liked that all of the trailers of the park were owned by park residents and all owner occupied no tenants. This park also has city water, city sewer and natural gas.

How did you find this deal and how did you negotiate it?

I found this through word of mouth and I negotiated directly with the owner.

How did you finance this deal?

hard money and I used one of my rentals for cross collateralization.

How did you add value to the deal?

I was willing to buy the park as is

What was the outcome?

Currently the park is worth $800,000 so I was able to not only create the passive income but it was a very good equity purchase

Lessons learned? Challenges?

Upstate NY gets very cold in the winter and you have to pay very close attention to frozen water lines and broken pipes to prevent high water bills. I also learned over the years that every spring to drop 2 dumpters to allow the tenants a chance to clean out their units as it prevents added trash around the park.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I'm a real estate broker so I managed this deal myself.