First Mobile Home Park Purchase

[Trigun Soni]

I've got a deal I'm working for a mobile home park and am not very familiar with the vetting process or if it's a good deal. I was curious as to whether you have experience with these in Texas. I recently got it under contract so am still in the option period. It looks good from a high level: Cap rate of 20% 6 units, tenant outlook (there seems to be a waiting list for the property). It's in a small town (around 750 people).

The seller accepted my first counter offer without trying to negotiate up.

Thanks in advance!

[Bailey Oryan]

Hey Trigun,

I would highly recommend listening to podcast episodes from the following MHP investors:

-Mobile Home Investing (Hosted by Kevin Bupp and Charles Dehart)

-Mobile Home Park Investors (Hosted By Jefferson Lilly)

-Mobile Home Park Mastery Podcast (Hosted by Frank Rolf)

Each of these shows have a ton of information on acquisitions, due diligence, financing, operations, and everything in between. I believe that Kevin Bupp's show helped me the most in regards to a due diligence check-list.

You are certainly going to want the utilities inspected, that has been one of the biggest headaches with my park. A lot of parks out there are on septic systems and/or well water, which is another thing you will want to factor in to your evaluation.

Cheers!