Looking For Information On Buying A Mobile Home Park

I am fairly versed in business and own several single family rentals, but know nothing about buying or owning a mobile home park. I am very interested in finding information on the ins and outs of both buying and ownership of a park, and would appreciate any help pointing me in the right direction. Also, how are valuations done on parks? Thanks! :-o

[ Edited by dearelvis on Date 12/27/2004 ][ Edited by dearelvis on Date 12/27/2004 ]

Comments(9)

  • JohnMerchant28th December, 2004

    Your question belongs in one of the Commercial Forums, see top of this page, Red Tab...as a MHP is a commercial property, entitrely different proposition than a mere MH.

  • dearelvis29th December, 2004

    Thanks, I did. Still, it seems like there is some cross-over here, so I would still appreciate it if anyone out there does have some information.

  • JohnMichael29th December, 2004

    Let me guide you in your quest:

    See:
    http://www.thecreativeinvestor.com/modules.php?op=modload&name=Forum&file=viewtopic&topic=36246&forum=21
    http://www.thecreativeinvestor.com/modules.php?op=modload&name=Forum&file=viewtopic&topic=36178&forum=31


    I suggest the DealMaker's Guide to Mobile Home Parks by Ray Alcorn

    You will need to know how you plan to deal with:

    The day-to-day maintenance of the park
    State regulations for mobile homes and parks
    Code violations
    City officials and business owners in the area who view a mobile home park as an obstacle to redevelopment efforts
    And yes the list goes on.

    This is what I had to deal with on a park in California:

    California Code of Regulations, a permit is required for the installation of a mobile home, accessory structures earthquake resistant bracing systems and any relocation of utilities outside the mobile home coach. Any changes to the coach itself must be submitted to and approved by the State of California Housing and Community Development Department

    I will tell you that dealing with a park is a real pain, but if managed well the profits are worth all the pain and suffering.
    [addsig]

  • dearelvis30th December, 2004

    Thanks so much for your response. I will look into the Alcom book. Out of curiosity, do you know if it is hard to find parks where there are NO park owned homes, and how does that play into valuation and desireability (both as a buyer of the park, and for potential renters)?

  • JohnMichael31st December, 2004

    No it is not hard to locate parks without park owned homes, the valuation normally will be on the land and its improvements and rental income. I have not found the mobiles them self to really help in the value as they are normally considered a depreciating asset.

  • candohome31st December, 2004

    http://finance.yahoo.com/q?d=t&s=UMH
    These folks own lots of um. Tthey offer a DRIP program and a five percent discount on the market price of their shares. I am getting a seven percent annual return.

  • williamladd1st January, 2005

    I have been reading a lot of posts on this forum and they are all great reads, but I couldnt help but notice that there are people here with the username John..somebody
    Such as John Locke, John michael, John merchant and so on.... did you guys get like a group rate on user names or something

  • JohnMichael2nd January, 2005

    Quote:
    On 2005-01-01 22:47, williamladd wrote:
    I have been reading a lot of posts on this forum and they are all great reads, but I couldnt help but notice that there are people here with the username John..somebody
    Such as John Locke, John michael, John merchant and so on.... did you guys get like a group rate on user names or something


    williamladd

    Haven't you ever noticed that most John's can handle groups and we even come portable LOL

    Look out the John's of the world are taking over!!!!!!!!!!!!!!!!!!
    [addsig]

  • williamladd2nd January, 2005

    LOL thats really funny. I have been reading alot your posts and I must say that you are quite the savvy investor.

    Please, tell me about you first couple deals when you were a beginner. and try to be as detailed as possible.

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