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Mobile Home Park Investing

Old 06-10-2015, 11:20 AM
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Default Mobile Home Park Investing

Any THTers own parks?
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Old 06-10-2015, 11:27 AM
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I have rental properties and please believe me when I say this. There is not enough money in the federal reserve for me to deal with that type of renter. Look elsewhere to make a living. Let me add to this. Yes you will have some really good renters but 25% of them will aggravate the hell out of you to the point you will wish you never went down this road.
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Old 06-10-2015, 11:29 AM
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I have a client that owns two in NY. I insure them both. He's made a hell of a lot of $. Just penned a deal to sell most of one to one of the largest developers in our area. He's set, his kids are set and his grandkids are probably all set too.
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Old 06-10-2015, 11:35 AM
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I agree with Tarbaby there is not much money to be made. At least in my ariea the people who live in those places are low income house holds. Maybe if you can get some land real cheep it might be worth your time or if you already have some land that is payed off. If you have patients and you are not looking to get rich off of it then go for it. I am not saying that it is not possible to turn a profit, but to get your business in a profitable stage Expect lots of hard work.
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Old 06-10-2015, 11:38 AM
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Two types of MH parks; general population, and retired communities. General population renters are mostly the back end of society if the mobile homes are older single-wides.

Insurance can be deadly expensive because fire or water cause extensive damage quickly; often total losses result.

I've owned rental properties for 15 years, and would only consider retirement types.
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Old 06-10-2015, 11:39 AM
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rent the dirt not the trailer
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Old 06-10-2015, 11:42 AM
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With all due respect guys, there is definitely money to be made. I don't think guys like Sam Zell and Warren Buffett would be piling money into this asset class if there wasn't money to be made...

Of course they're low income families, it is low cost housing. I'm looking at the macro trends, and it seems to me that as household wealth becomes more concentrated, affordable housing will become more and more important.
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Old 06-10-2015, 12:06 PM
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Originally Posted by Belrose View Post
With all due respect guys, there is definitely money to be made. I don't think guys like Sam Zell and Warren Buffett would be piling money into this asset class if there wasn't money to be made...

Of course they're low income families, it is low cost housing. I'm looking at the macro trends, and it seems to me that as household wealth becomes more concentrated, affordable housing will become more and more important.
Agree 100%. I am no expert on them by any means but here are couple of tips that I have learned.

Look for about 13-15% cap rate.
Raise rent annually
Sub meter the water (costly up front but you make it back very quickly)
Look for development trends and do you see some type of project development in the area in say 10-15 years making the land worth more. This is what we use as our exit strategy
Hispanic trailer parks are gold mines
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Old 06-10-2015, 12:07 PM
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Rent the dirt, not the dwelling as has already been pointed out. I have a lot of rentals but no experience with MH parks. The RV parks look more appealing to me, especially in a coastal setting. RV parks on the Texas coast have been very lucrative for people that have built them in the past 10 years.
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Old 06-10-2015, 12:19 PM
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I've also keyed in on some research that suggests many municipalities are outlawing new development of MH parks, creating a fixed supply and increasing demand....
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Old 06-10-2015, 12:27 PM
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Originally Posted by Belrose View Post
I've also keyed in on some research that suggests many municipalities are outlawing new development of MH parks, creating a fixed supply and increasing demand....
Not sure it matters to much. Typically in a bigger municipality that would ban trailer parks the land would be to valuable for lower income housing anyway.
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Old 06-10-2015, 01:38 PM
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My buddy owns a MH park that is top notch. He set the standards high and he has a wait list for people to get into the park. Looks like a high $$$ neighborhood but its trailers and not homes. Ride through a few trailer parks and you will always see a hand full of homes that are kept very nice surrounded by crap. Those people can't afford a nice home but they take care of what they have and want to live in a park where others take the same pride. Not many around but his thrives and he has a waiting list.
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Old 06-10-2015, 03:02 PM
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For the most part we got out of mh parks in 2004. Own campgrounds now.

Feel free to PM me.
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Old 06-10-2015, 03:17 PM
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I own 2 in CA.
You can pm me if you like.

B
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Old 06-11-2015, 01:28 AM
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I know several folks that own trailer parks . Two of the three are on septic systems and are always giving trouble. The one on municipal water and sewer not only don't have this septic issue but have more lots per acre.
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Old 06-11-2015, 12:36 PM
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Thanks Think Done Deals and icemanbryan, I have sent you both PMs. Would love to hear from any others out there that have experience or ideas...

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Old 06-11-2015, 01:09 PM
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Can these be invested in? Like buying stock?
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Old 06-11-2015, 01:30 PM
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What bout buying mobile homes on lots? Or buying a lot and putting a mobile home on it to rent? The idea being not so much appreciation, but cash flow.

Wife and I want to get into the rental market. Not sure how to go about it. Always wondered about the mobile home thing and how how its done.

Main thing I suppose for us is capital. We dont have enough just lying around (that we'd want to use, anyway) to really get started. I guess the idea is to buy one or two and use the income to add to the portfolio?
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Old 06-11-2015, 01:32 PM
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Originally Posted by Tarbaby View Post
I have rental properties and please believe me when I say this. There is not enough money in the federal reserve for me to deal with that type of renter. Look elsewhere to make a living. Let me add to this. Yes you will have some really good renters but 25% of them will aggravate the hell out of you to the point you will wish you never went down this road.
Pay management company a small amount...

Have a buddy that does this and in about 10 years, the land and all trailers are paid for.
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Old 06-11-2015, 06:39 PM
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Pros and cons but THEY MAKE MONEY, BUT you BETTER BE THERE TO COLLECT IT ON FRIDAY

Different type of renter but the clients I have with them do ok but very strict on their renters

There is one family in our town that owns several parks and not the MH's, they seem to do very well with this

As someone else said Hispanics are good honest people of the most part and from the are very diligent about paying their bills unlike low income White/Black Americans. Just the truth from what I have seen
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