Are you thinking about investing in a mobile home park? Here are five tips to consider before making that purchase!
The most common mistake is overpaying for the mobile home park you are looking into. Be sure to do all your research on the value of the community before making a deal! Another thing to think about is how the market is currently doing in that area. You can take a bad mobile home park and make it great, given the right environment. A bad market, however, will make even the best-looking mobile home parks fail. This is because while you can improve the aesthetics of your park, you cannot change the surrounding areas, so it may be destined to crash and burn.
Failing infrastructure should be uncovered when you are doing your research prior to purchase. Water and sewer systems should be examined immediately. This is because contaminated water could potentially poison your residents, causing you very serious legal trouble. Another risk to think about would be your budget. Leave room for unexpected repairs that might cost you thousands of dollars.
The fifth biggest risk to buying a mobile home park to consider is misunderstanding the actual value of what the park will be worth. The lot revenue is vastly different from the shell value of the homes, and using the wrong number for budgeting can cause a lot of issues down the road. Always keep these tips in the back of your mind when deciding on purchasing a mobile home park!