Mississippi Mobile Home Park

[Jason Ray Richardson]

Investment Info:

Mobile home buy & hold investment.

Purchase price: $36,000

Cash invested: $40,000 (Counting repairs and the purchase price)

Mobile Home Park in disrepair. Now cash flowing 2,000 a month not counting the note on one of the homes a tenant is buying.

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

Entry Price. It was my first park and since it was so cheap a lot could go wrong and I still be ok. In other words, low risk.

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

A wholesaler had sent it to me. Due to circumstances around the park it had to be a quick close. I had just BRRR a property that I had purchased the year before so I had the cash.

How did you finance this deal?

I paid cash.

How did you add value to the deal?

Basically cleaned it up so that the tenants couldn't argue with the rent increase.

What was the outcome?

A cash flowing property with very little oversight now. Low maintenance.

Lessons learned? Challenges?

Do more due diligence by asking more questions. Dealing with the city is probably the biggest challenge.

[Jason Ray Richardson]

Originally posted by @Tara Yoder:

What additional questions would you have asked specifically? How was the city difficult to deal with? My husband and I are looking into purchasing a mobile home park. Any advice would be great. 

Thank you, 

Tara

 With most buys you have a long enough period to do proper due diligence. Don't be so ready to make the deal that you rush past things. A good guide can be found at www.mobilehomeuniversity.com . Like with me I went through the property only one time with the owner, and he was talking about the park owned home tenants as if they were still renting . I never followed through on that. They were both gone (not that I blame them since the water was off for 4 months)  and the places were dumps. Luckily I got such a good deal it didn't derail anything. However, if it had been a bigger park or if there had been more POH then it could have been problematic. For example his rent rolls were totally false, I should have verified those.