First Mobile Home Park purchase

[Byron Hayes]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Paris.

Purchase price: $825,000
Cash invested: $100,000

Add value C- mobile home park with 60 spaces.

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

Fantastic returns.

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

Deal was sitting in my wife's home town where we visited and was looking at a different park and is about 5 hours from our current home in Austin, TX. We stopped in and asked questions of the manager who told us the owner was interested in selling. Took several months to get the owner to finally move on the deal because his wife loved the location so much.

How did you finance this deal?

Owner finance

How did you add value to the deal?

We immediately increased rents to market level and passed through the water cost to residents. We're removing drugs, non & late payers, unsightly dilapidated homes & shipping containers (for on-site furniture store). Added new signage, refurbished and sold an older home. We'll be taking out ran down mobiles and adding in a couple dozen new or FEMA homes. Working on plans to pave the roads and update some of the infrastructure.

What was the outcome?

Projected outcome looks very promising.

Lessons learned? Challenges?

Don't spend too much on fixing up older mobile homes. While we made a profit and wasn't worth the time lost.

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

No... I'm a licensed Broker but didn't take any commission is lieu of getting a better price.