My first Mobile Home Park

[Corey Block]

Investment Info:

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

Purchase price: $110,000
Cash invested: $22,900

This is a mobile home park that I purchased from a “mom and pop” that lived in and built the park. It appraised at $147,000 with rents WELL below market and operating at 35% vacancy. I have bought and moved in 3 new homes and plan to get the rents up and the park full then refinance and pull all my equity out to put to work.

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

I like the idea of just renting the land to residence and the 14 units spreads my risk.

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

I found this deal while networking with local real estate agents and negotiated the price down from $125,000 to $110,000.

How did you finance this deal?

I put 20% down and financed through a commercial lender that I have a relationship with.

How did you add value to the deal?

I have moved in 3 new homes and working to clean the place up.

What was the outcome?

Rents have doubled and the only problem resident has been removed. I am working to rebuild the main road in the park and have someone keeping up with the lawn and landscaping. So far, so good.

Lessons learned? Challenges?

Very important to have all the paperwork and policies in place, and be prepared to enforce them to the letter.

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

I did work with a realtor, but not one that I would recommend