All Forum Posts by: Roger D Jones

Sam,

You are looking at it right.  He needs to understand you are buying one of two things- his business as a cash flow entity OR the property (retail) with two trailers (wholesale).  As a business with expenses, taxes, insurance, non-paying tenants, maintenance and an empty rehab trailer haulaway he is probably clearing $500 a month +/-.  If it is a clean guaranteed $500 a month that's worth a 50k sale price.  He is better off selling you the property and two trailers.  

These are the tough conversations with sellers you have to have when they let their parks and trailers deteriorate to the point of utter distress.  They took all the cash out of the park for years with no reinvestment of time, energy or maintenance.  Then they want to cash out again.  

But back to your original question... just show them the numbers by comparison.  You are only buying what they are selling.

I am no fancy investor but my 'Grandpa' advice would be this.  You have hooks into what could be in the future a pretty nice income driving property- multiple AirBNBs, wellness spa, orchards, etc.  I don't think I would tie up my leverage on a new mobile home- you may need it more for your other projects.  Maybe buy a used RV and a truck (you will need it if you don't have one already) and sneak up on the mobile home remodel and focus on the income drivers on the property.  

Just a thought... 
Good Luck

 Logan, I guess so much depends on where the park is located and the climate, city services, etc.  If the city doesn't plow the roads around the park I am less inclined to pay to plow the park roads.   It is tricky but you don't want to 'create' an annualized expense that may or may not make a significant difference for more than just a day or two.   

Are main streets being plowed by the City?  Are neighborhoods being plowed by the City?  We have rural park with no City services throughout the area yet residents expect us to plow the park.  We don't do it. 

Problem with hired services is you are the last guy on their list and by the time the get to you the snow is compact ice or melted.  

Best advice is to not do it.

Always check State law in conjunction with city/county ordinances.  Over prior decades cities and counties usually cut and paste stipulations into their regs and then as state law change they fail to update their codes.  I read once in Arizona that tiny homes on wheels are considered non permanant structures and allowed in state parks and RV parks.  I never double checked that and am no lawyer... just a recollection.

I love the trampoline conversations... always the highlight of my year.

Don't do it...  Here is an interesting podcast on why not.
https://www.mobilehomeuniversity.com/mhp-mastery/the-new-par...

 TOH means Tenant Owned Homes; POH means Park Owned Homes.  Easy Cheesie!

 Just call around to different parks.  Most established park owners know what the pad rents are locally so with a couple calls you will have a good idea.  You can also look on RE listings for mobile homes for sale in parks as the lot rent is usually noted in the listing.