All Forum Posts by: Roger D Jones

Mark and Samuel,
Just saw a brand newly developed MHP for sale in LaGrande Oregon.  Probably some big differences from Oregon to Alabama but you might find it interesting.  Its in Mobilehomeparkstore.com if you are interested.  Saw it last night.

With our two TOH parks we have a resident in each who keeps an eye on things and we do monthly visits.  Our other park is 22 spaces (13 POH/9 TOH) has a 24 hour per week maintenance manager who we pay very well with paid holidays and vacation time.  We take very good care of our POH homes and park in general as we are able to command high rents in due to demand in the rural area we operate in.  We have an website where repairs are requested and handled immediately.  Wife owns an accounting firm so all the rents and financials flow through her company to which I pay for.

I know there is a general disdain for POH homes for MHP investors but given the narrow specifics on this park we get a huge lift in our NOI while also having a well paid employee who appreciates his position with us.

I was just saying build it as a long term RV park then sell.  My uncle did one and at the far end did a driving range.  It was awesome!

I have had good fortune buying empty mobile home parks and converting into long term RV parks.  Everything depends on the park's location.  What is the rental housing market like?  Are there affordable homes in the area?  Are there other RV parks in the area and is everyone crammed in like sardines?  Our success has been in keeping the lot spaces large as for double wide mobiles with yards and parking.  Long term RV residents appreciate the extra space and parking.  You can even have 10x10 sheds put on each lot for additional storage and charge for it.  You can also charge more per month for the RV space typically than a mobile home.  We even have one park that I am expanding a bit that the county will allow me to use one septic system (tank and drainfield) for two RV spaces.  Also have a little laundry building with a washer and dryer that clears a few hundred dollars a month.  Something else to consider I suppose.

Brandon,

Sounds like you found a great park investment.  Own a few parks and always snooping around for more.  The holy grails of MHPs is finding the ones with undermarket lot rents and utilities covered by the owner that can be billed back to the residents.  Garbage, sewer, water... 

Remember it is not just how much more you are earning every month but how much you increase the value of the park. MHPs are valued less on what they look like and more on how much cash they bring in every year. At a 10% CAP rate every dollar you add to your bottom line either through expense controls or rent increases adds 10 dollars to the value of your park. Save 12000 in utilities in a year- you just increased the value of your park 120k. Raise total rent roll $500 per month you just added 60k to the value of your park.

Right now national interest rates are elavated so you need a higher CAP rate to value and sell your park.  As interest rates go down... required CAP rates go down and that is when it gets really exciting.  

I am no investment analyst... just a mom and pop operator so I keep things pretty simple.  

You did good and Metron meters are great!  We use them too.

Wendy, 
Mobile homes are like cars.  Bill of sale gets it done with owner holding title until it is paid off.   Simple google contract.   Seller needs to make sure payment includes an escrow amount to cover insurance on the home.  Your commission is between you and seller I suppose.  Hope this helps a bit.

90% of your due diligence should be water lines, sewer lines or septic systems, well condition, power.   Where are they, how old are they, what is their condition and is there a plan in place if something fails.  Reach back if you have any questions.

Some States tax them differently consequently they have listings available.  Not sure how helpful they are as it's been years since I visited ours in Wa State.

Many park owners will purchase new homes and then sell them in the park to infill vacancies.  Most of the numbers I have seen are between 40k and 80k for these homes new from the factory.  240 is a big number.   I do think you could find local park owner who would pay the moving and set up costs to place the home in their park and then you/she can sell the home set up in the park.  You might even get them to forego lot rent until it is sold.