All Forum Posts by: Kelly Bernhard

Thanks to everyone's helpful input! Much appreciated!

Thanks to all of you! Yes, the ability to easily sell because of the rural area makes me slightly uneasy.  My offer was $275K. Does that seem reasonable or too high because of the area?

Hi! Just looking for validation on the price for a small mobile home park. It has 25 lots, 22 rented, all tenant owned. City water/sewer and separate meters with city sending out separate bills. Small rural town. Lot rent is $165. What would you pay?  Thanks!

Thanks for the comments Bruce and they totally make sense, especially if purchasing out of state. I wonder if mobile home parks and apartments are similar in the way they're run. I would prefer a MHP but I'm guessing they're similar, though I have no experience.

Shawn, I agree and would prefer 3-4 SFH's, but in my area that does not exist except possibly in places you wouldn't want to go near. Since I work I don't want to purchase a fixer out of state. Are the homes you're talking about in Indianapolis fixers?

My thought with the mobile homes is a house depreciates but the land appreciates. So I'm thinking as long as I purchase in a decent area with the numbers right, I'll have good cash flow and the land should increase in value. I would rather have mobiles in a good area than purchase around here in a bad area, though I realize there are more options.  I'd appreciate others opinions! Thanks!

Thanks for the thoughts! I really appreciate them and I especially do not want to make a mistake in this market so I'll be getting educated for sure! The risk/reward seems much higher (agree with Jassem!) so it will be well worth it to know how this market works. Thanks for the info, Jefferson, and I will definitely look at this option.

Bruce May, that is an eye opening story and I appreciate it. I'm curious what your distance limits will be with a larger/on site managed park. I've found it's hard finding a good PM period, and finding a good PM working with this unique market may be more challenging (unless they're onsite, maybe). I would be interested if others find it more challenging to find a good off site PM for this market-harder than SFR's.

Hai Loc, thanks for your comments! The park is on the FL/AL border and it looks well kept, but not resort-like. The owner pays the water for and everything else is individually metered. I agree the price is too high for the return!

A few years ago I was with an agent looking at some SFR's and she had just purchased a mobile home park. I thought she was nuts to go into that market, and now here I am looking at it! Thanks again, all!

Thanks for your response Jefferson! Yes, I am not educated in mobile homes and I initially thought starting small would be the way to become educated. I absolutely get what you're saying...starting small, far away is not a good recipe for getting an education! I checked out your site and I have a lot of reading and watching to do! Good stuff!

I had read that small MHP's are not the way to go and was going to research the reason-I appreciate your comments.

I also appreciate your comments on the area. I was concerned about the economy but thought that might be a plus for a MHP. 

 I was thinking of buying a home/land combo to dip my toe into mobile homes. I'll be reading and watching too! 

Thanks!

Thanks Jassem! My gut told me to cross that one off so I appreciate your response. Hypothetically, if it had been a closer location and $150K would you have done it? I was thinking I would have, but would be interested if you agree. Thanks again!

Hi,

I've invested a couple times for appreciation but now I'm wanting cash flow. This is new for me so any advice would be great. This is a very small mobile home park (4 homes and a building). The purchase price is $159K and the rents from the homes are $1750. The building would rent for $550 but is currently vacant (conservative).  Taxes and insurance should be about $1830 annually and a PM will be about 10% (hopefully less!). The owner will finance for $50K down with the balance at 5% over 10 years.

The park is across the country...I live in the SW and the park is in the SE. If I can do without PM I will but I'm factoring that price into the equation. I don't like purchasing across the country but I need to get out of our expensive state (California). Anybody have a small park far from your home?

What do you guys think?  Thanks so much for any advice!!!

Hi,
Has anyone had experience investing in a resort area? Specifically, I'm thinking of Big Bear. Any feedback would be much appreciated. Thanks!