All Forum Posts by: Bruce Valladon

Originally posted by @Jon Dorsey:

200*12*72 would put the value of the MHP at $172k

Add in approximate value of the house, or rental potential ($400/mo * 12 * 50% for expenses / .1 for CAP rate = $24,000

Add value for any homes, if any. Sounds like $0 since they are TOHs (tenant owned homes).

Subtract out any major fixes (demo of store, fixing broken infrastructure, reserves for failing septic, etc.)

Total = $196k - any big issues...

It would be a good intro to it and being right down the road from you is the only way to make it work for a smaller project.

Risk vs reward is what you have to determine. Being in the country, is there demand to keep it filled?

Thanks Jon, but what does the 72 represent? (200*12*72) I found out the space rent is average of $300 per pad and the house is renting for $700. Still waiting to hear back on expenses and maintenance cost. When I drove through it looked like more of a government assisted income clientele more then regular working people. There is a big demand in my town for low income housing so keeping it full shouldn't be a problem. Two problems I see is the work to get it looking like a decent place to live (for tenants) and perhaps violence and crime in the park (not sure if that is even an issue just a judgement call)

Thanks for all the great feedback.  I will do some due diligence and make sure the land and utilities are solid.  I got cold feet when I seen the condition of the place, but on the flip side that is where the opportunity lies.  Sounds like with some solid enforcement of park rules, proper management and some elbow grease.  I could have a solid investment on my hands.

Found a Mobile Park in my area that seems like it would cash flow very well. But I am concerned by what it could cost to update the park. Upside is there are 12 pads of tenant owned mobiles and a small house on just under 2 acres with a gross rent of $3,700 not including two units non occupied, owner is asking $200,000 for the whole thing. Downside, went to the park and found it very run down and cluttered with trash. The park is 5 miles out of town and in the country and the owner wants to sell as is. Seem like it would be profitable, but if I wanted to turn it into a nice park, might get expensive. Any advice?

Originally posted by @Jon Dorsey:

Sounds like all 12 homes are POHs, is that correct?

No, they are tenant owned homes.

Good advice, thanks Thomas.

I dont know what POH stands for but I am guessing it has to do with space rent compared to all in mobile and space rent.  I dont know at this point, I need to contact the seller and get that info.

Hey guys, first time posting here and first time wannabe investor. Had a questions about a small mobile home park that is for sale. It has 12 units on it with laundry facitlity and a small house on the property. Also has an old abandon store on it that they are not charging anything for but probably will cost to demolish. The property is located a little bit out of town in a low rent area (kind of out in the country) and the pics show the mobile homes are pretty run down and out dated. I havent contacted the owners yet cause I don't know how to value the place. They got it listed for $200,000 which seems like a deal if space rent is at least $200 for each unit and also the ability to rent the house. (I have zero info on the house at the moment.) My goal would be to slowly renovate or replace each mobile as tenants move out, to earn cash off the sale of the mobile and then space rent for cash flow. So I guess my questions are:

How do I value the property?

Am I just creating a full time job for myself by buying this place?

What questions should I ask that might not be obvious?

Is a run down old mobile park worth investing in?

Is this too large of a project for a first time investor? Should I find a partner that has more experience?  Or should I just steer clear?