All Forum Posts by: Kathy Miller

Hello, I would be happy to answer any questions you may have. The first thing you need to know is if there are any restrictions in your area against a mobile home park. Building one from scratch can prove to be both difficult and expensive. 

As for my story...The parcel we own had been a mobile home park previously. It had septic systems and city water lines for 8 homes. At that time, the state water management authority allowed 2 homes to share a tank if they were on the same parcel. The septic permit determines the minimum area required for each system and for our 7 acre parcel that is 6 systems, therefore we can and do, have a total of 12 homes. Yours will vary depending on the site soil conditions and legal requirements in your state.

We removed the old trailers and brought in newer ones. The average cost was about $5000 per singlewide and $10,000 per doublewide. We currently manage the park ourselves and do most of the maintenance. When we travel, the tenants deposit their rents directly into my checking account and text me a copy of their receipt. Some months we just collect rents; $500 for 3 bedrooms and $400 for 2 bedrooms. When something breaks, we have several local handymen we can call to make repairs.

In our area, there is so much demand for quality rentals at an affordable price, we rarely have a vacancy. When we do, I advertise on Facebook and get 10 or so responses quickly. We have a 2-page application and require a 6 month lease. I do my own reference and credit checks; the best qualified candidate wins!

My bank deposits rent payments directly into my rental checking account. They just ask tenants for the last 4 digits of my account number and then write the tenant's name on the deposit slip so I can view it online. The tenant keeps the deposit slip as their proof of payment since they all pay with cash.

I would remove shutters completely and paint the door a trendy color, something that makes buyers remember your house. Landscaping will make the most difference in curb appeal.

The answer depends on whether you will be keeping the property and renting it or making some improvements and then selling it. What are your plans?

Just asking this question shows you're thinking outside the box. In my area the property assessor information is online, so I check to see who owns the house before I call the listed landlord. I also check to see how many other properties this same landlord owns, so I can have a casual conversation "landlord-to-landlord" being careful not to say anything discriminatory of course. Most people like to talk about themselves, so I encourage that and then listen for things that don't match.

Website www.mobilehomeparkstore.com is a great resource for all thing mobile home. They have listings of existing parks for sale. We purchased an existing park and financed the purchase with a local bank. Then we expanded and improved it to our liking on a "pay as you go" basis. Make sure you understand the restrictions in your area before investing. Best of luck to you.

My banker says it doesn't matter what the closing date is, but it seems to me that closing at the beginning of the month would allow me to use current month rents to reduce my out-of-pocket cash needed at closing. Am I missing something?

@Lee Schaeffer

First you have to determine if mobile home parks are allowed in your area. Many cities have zoning limitations against them. Finding an area that allows a MHP and has access to city water and sewer is ideal. Existing parks like this sell for $400,000 and up, depending on size and market. We were able to buy a 7 acre parcel that had city water and septics set up for single-family houses. The seller lost his financing so we got a deal. The land had once been a mobile home park so the zoning was already in place. We started putting in homes and renting them. So far we have 9 and they are always full. Cash flows like crazy!

We I own a small mobile home park and all the homes in it. We can buy a home for $5000 and rent it for $485 per month. You cant beat that return, if you are willing to deal with the mobile home renter and put in the time!

@Bruce May

 No I don't have an on-site mgr and finding someone competent is nearly impossible in this market. Vetting applicants is tiresome and attracting quality tenants has taken time. We own 9 mobile homes and it has been an uphill battle getting the tenant pool to understand that we actually require an application and a lease. Thanks for your comment.