Buying Mobile Home Park - Posted by Mike Norris

Posted by Mike Norris on September 08, 2003 at 17:15:47:

Thanks so much for the Info. It is very nice to be able to share info, and help each other become successfull. The park which I mentioned do’s not have a motivated seller at this point, as they are milking all the profit off it. The other thing is the land value going up quickly in Oregon.

Buying Mobile Home Park - Posted by Mike Norris

Posted by Mike Norris on September 04, 2003 at 22:21:43:

I have found a older 40 space park but it has septic and a well and both have been in since the early 70s, and they have to pump septics every few months and ream the lines about once a month. Space rents are around 200 amonth and are asking $650k, It needs alot of work and has Old mobiles but no park owned. Has anyone had much success at buying a park that needs this much work? Looks as if it could turn into a money pit if not careful. Looking in Oregon

Thanks Mike

Re: Buying Mobile Home Park - Posted by Eddie-Mi

Posted by Eddie-Mi on September 05, 2003 at 11:57:25:

I would be careful with old septics and wells, but I wouldn’t let it be a dealbreaker. At the right price anything can make sense.

I just bought my 2nd park with about 50 units that is in a state of disrepair. Short lots and junk all over the place. It also came with a house and some apartments. The lot rent is 210 and city utilities. My price was 350k and I bought with seller financing.

Compare that to questional septic system and a price of 650k- I wouldnt give this park a 2nd look.

Re: Buying Mobile Home Park - Posted by Philip

Posted by Philip on September 05, 2003 at 07:29:52:

What type of catch system does the sewage system use?
In our state and some others the DNR is making parks change to sand filtration units.
A park I was looking at just had to change and it cost them 40k.
That was aside from any other septic work.

Re: Buying Mobile Home Park - Posted by Tony-VA/NC

Posted by Tony-VA/NC on September 05, 2003 at 07:13:22:

Greg has some good thoughts on the septic problems.

A question that came to my mind was the age of the park and the size of the older homes. Can these homes be replaced by the larger, modern homes? Many times these older parks have limited lot space that simply cannot accomodate a 14x70 or larger home. This can seriously limit your income potential as well as your growth potential.

Older homes that are of reasonable size may well be repaired but they may be a challenge to market if they are too small for the needs of today’s buyers or renters.

I am not saying you shouldn’t pursue this park purchase, just food for thought.

Best Wishes,


Re:Septics are failing and… - Posted by Greg Meade

Posted by Greg Meade on September 05, 2003 at 06:23:05:

if they are originals, they got very good life from them. IMHO b4 i parted with a dime or executed a LOI I would get a septic professional togive me an estimate on repairs of existing, and also the cost of an entire new state of the art sewer treatment plant. These can be totally self contained if there are sufficient evap fields available. As a rule of thumb replacing the old with new will be cheaper. a friend in FL convertd and the cost for 34 mobiles an 17 rv was 110k including engineering and permits (Federal). was able to get a small grant from EPA and secured the very low interest loan thru SBA. Using your very rough numbers, 96k revenue, ballpark 32% expenses (with no park owned homes)=96000-30720=65,280 NOI. I would want 16% return so…65,280/16% or .16=vlue of 408,000. Would want to discount from this fig for cost of upgraded sewer. You see where i am going with this…