20-Unit Mobile Home Park 👎🏻

[Kim Warren-Page]

Investment Info:

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

Purchase price: $150,000
Cash invested: $20,000

Bane of my existence... I should never have invested in Anderson, SC. The crime rate, drug use, unemployment are higher than Greenville, SC . This is a twenty unit mobile home park.

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

My husband and I were looking to replace the income from our plumbing company with income from our real estate investments. At the time of purchase (if everyone actually paid rent and we could get good renters), it would have generated $11,000/month in net profit. But it was a disaster. We ended up selling a majority of the units for $8,000-13,000 a piece and now charge lot rent.

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

Our realtor, a friend from middle school, found this deal for us.

How did you finance this deal?

We finance this deal through a small, local bank with 20% down.

How did you add value to the deal?

Lol... We haven't. We've tried. We would remodel a mobile home and screen for a great tenant only to end up with a destroyed property after an eviction.

What was the outcome?

The property still cash flows. Because most are lot rent only, our stress level has decreased dealing with this property. Not sure of the exit strategy here...

Lessons learned? Challenges?

Do not buy a trailer park in certain parts of Anderson, SC.