Posted by Mike Cheatwood on August 06, 2005 at 15:11:24:
You can do that but it is one of those “hard to get there from here” scenarios that requires you to first take a hard look at the profit angle as well as how much cash you will have to “front” to make the deal work. You should also consider how long you can accept the negative cash flow from such a “vacant” deal until you have the lots/homes purchased, moved in/set-up, and then rented out or paying on notes.
There are also the issues of:
- Will the local zoning/planning dept. allow the land to still be used for mobiles?
- Will the current lot sizes accomodate modern homes or will the park have to be reconfigured at some substancial cost?
- Will the current power boxes handle later model homes or will all of the power boxes/cables also have to be redone at some extra expenses X # of lots(i.e., per lot amperage load/200Amps is the “modern” requirement in my Park but some older Parks only have 60 Amp boxes…).
Might want to check out the Commercial Site for Ray Alcorn’s prior postings on “developing mobile home parks, etc…”.