All Forum Posts by: Carolyn Dawson

Definitely a big task if you have no experience in the field (I don't). There are a bunch of posts on this website highlighting different things to look out for. For valuation, a quick one I've seen is to multiply number of units by 60 and then by 12 months (# units x 60 x 12). It doesn't take into account expenses, which may be difficult to make the economics work if there are only 10 pads. Another thing to look out for are city vs. park owned utilities. Having to replace a septic tank would make it difficult to make any money over the long run.

There was a park in Belleville ON listed for sale a few years ago. It was listed for $595k with $114k gross income, 3.6 acres, 18 trailer sites, triplex and duplex on the property. Private septic needing replacing ($40k+). Hope that helps as a comp.

Best of luck!

Thanks Taylor - yes, they were asking much more than we wanted to pay in this case! The asking price was quite high and the rents were too low to support it.

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Originally posted by @Jack Martin:

@Carolyn Dawson I concur with what the guys above have said. The park is way too small to afford an experienced local management horsepower, which you would need to lean on heavily on a project like that. A park like that will be much better for someone who lives there. If you are just getting into the space and would like to buy a smaller deal for your first one, it will be best to do that closer to home so you can navigate all the unique aspects of MHP.

Thanks Jack! We're using a local property manager to take care of our rented condo and duplex and that's working out well, but the MHP space is definitely more challenging. I didn't go through with this deal - maybe down the road with some more experience!

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Originally posted by @Hai Loc:

Originally posted by @Carolyn Dawson:

Good morning, I'm a new investor interested in buying a mobile home park in Northern Ontario. The property has 10 homes on it right now (mix of owned by the park and privately owned paying the park rent). There is also a house on the property and lots of space to expand and add more lots. There is potential to add a campsite so that summer visitors could park RVs to generate additional revenue. I'd just have to dig new wells for the water supply. I have a list of questions I want to ask the seller and concerns about insurance, zoning and vacancy rates. I think one of the biggest risks is that I don't live in the same city as the mobile home park so I'd have to hire a park operator that I trust to manage the park, handle snow removal and cutting the grass, etc. The estimated cost of paying a park operator/property manager is cutting into the cap rate on the investment. The seller was the owner/operator and lived in the house on the property. He recommended I talk to one of his best tenants and ask him if he'd like to manage the park.

I'm looking for any feedback or information you think I should know as I do my due diligence on this. Thanks so much for your help!

Don't do it.. The fact that you are coming to BP for answers is already a red flag. Dealing with private utilities (water and septic) for the first time can be a nightmare. The numbers may seem juicy but I can tell you the fact that you need to change the septic may entail more maintenance then it appears. This is for an investor how has been through this before an know what they are doing

Thanks Hai. Agreed - the septic is the scary part. I appreciate your advice and didn't go through with this.

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Originally posted by @Paul Moore:

@Carolyn Dawson. Though I would love to see you get started, I agree with @Hai Loc that you should hold off and get some training first. There are courses you can get or attend to learn all about this asset class. Then you will be armed to evaluate these deals correctly. And you may meet a partner who can work with you as well.

Thanks Paul, I agree! I'm sticking with condos and duplexes for now as I learn more.

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All Forum Posts by: Carolyn Dawson

Carolyn Dawson has started 1 posts and replied 5 times.

Post: Mobile Home Park in Northern Ontario - I'm a new investor, help!

Post: Mobile Home Park in Northern Ontario - I'm a new investor, help!

Post: Mobile Home Park in Northern Ontario - I'm a new investor, help!

Post: Mobile Home Park in Northern Ontario - I'm a new investor, help!

Post: Mobile Home Park in Northern Ontario - I'm a new investor, help!