Posted by Dr. Craig Whisler CA NV on October 07, 2003 at 10:41:57:
It would be more like buying the whole herd.
Tony is right on, in EVERY detail.
Frankly, insanity would be a better option.
Regards, doc
Buying the cow - Posted by Jake
Posted by Jake on October 07, 2003 at 07:08:09:
Need a little advice. I’m interested in purchsing a lot and starting my own mobile home park. I’ve just ordered Lonnie’s book.
What are the major costs involved w/ starting a mob. home park from scratch. Do I have to pay for the city to run the water lines out and the power company to run lines out to individual sites? What else is involved. How long should I anticipate setting up a park from scratch including getting permits, all sites set up etc for a 25-30 site park? Any info would be helpful. Thanks.
Re: Building a cow - Posted by Tony-VA/NC
Posted by Tony-VA/NC on October 07, 2003 at 09:20:12:
Jake,
You will find some great posts about this topic in the archives that should also be read.
Developing a mobile home park is quite an undertaking. Few local governments will go for such a venture. Most are doing their best to eliminate and restrict the current parks they have.
Even if you can get through the red tape to break ground, you now have to build from the ground up. This is cash intensive with no income in sight for some time.
Building inevitably involves delays (weather, inspectors, contractors, cash etc.). By the time you finally get the pads in place you may think you are at the end of the tunnel. Nope.
Now you have to find a means of getting homes onto those new lots. Most you will have to do yourself and no doubt your new park will merit newer homes. The current repo market will help you out but you are still looking at $10k - $15k depending on the type of home you move in. Some dealers may help out and some individual homeowners may move a few in but you are still looking at several hundred thousand dollars in purchase, move, set up, decks, skirting, utility hookups etc. for the homes you are left to move in.
This does not happen over night either. All the while you are paying construction loans (unless you hit the lottery). Cash is going out in droves but none is coming in.
Once the income begins, you are still likely to take a couple of years to begin to see a profit.
I would highly recommend you consider buying a park that is already established. You will still likely have to turn the park around and spend some cash but you will be buying into an existing cash flow that will help pay the bills while you make the improvements.
I would also suggest you consider individual land/home packages (much on this in the archives as well). These are a personal favorite of several of us who post here.
Tony