MH Park For Sale - Posted by Dave(WI)

Posted by PeteH(NYC) on December 26, 1999 at 16:27:41:

I’m shopping for a park myself at the moment.

MH Park For Sale - Posted by Dave(WI)

Posted by Dave(WI) on December 26, 1999 at 10:11:01:

I bought Lonnie’s “Deals On Wheels” in May to see what these MH deals were all about. Since then I’ve purchased 7 MH’s and have sold 5. My worst ROI has been 97%!!! I am now sold on MH’S

I would like to expand into MH Parks and just located a one for sale that is located in the state that I live. However, it is a 5 hour drive away. The Park has 21 spaces and the seller is asking $185,000. If I decide to pursue this dealer, I will need seller financing.

Before I make my phone call to the seller, I would like to ensure that I ask the right questions to see if this park has the potential to be a good deal. Please advise what questions I should ask and what I need to know when I make this call.


Re: MH Park For Sale - Posted by PeteH(NYC)

Posted by PeteH(NYC) on December 26, 1999 at 12:35:26:

My first thought is, a five-hour drive is gonna be a drag to make as often as you’ll need to make it in the early stages of turning around a park. You’ll be a lot happier locating something within a two-hour radius (and I’m sure you can find something). For a smaller, mom-&-pop type operation (under 50 spaces), your management involvement will need to be more intensive because you won’t have enough income to afford hiring professional help.

The questions you’ll ask all revolve around how much net operating income (N.O.I.) the park generates: what’s the lot rent? any park-owned homes? how many vacancies? what are the exact, verifiable expenses? city water/sewer, or well water and septic, or some combination? do tenants pay their own utilities? (can you get them separately metered so they will pay their own? – this could represent upside) how much deferred maintenance can you expect – for instance, how old are the sewage lines and/or septic tanks?

There is a lot of good information to look at on the Manufactured Housing Institute’s website; there is also a textbook by George Allen called “How to Find, Buy and Operate a Manufacturing Housing Community” that’s full of exactly the kind of information you’re looking for. Also, on this website, read everything you can by Ray Alcorn, who has a wealth of information on buying and operating MH parks.

Best of luck.

Re: MH Park For Sale - Posted by Mark (SDCA)

Posted by Mark (SDCA) on December 30, 1999 at 11:06:26:

I would always use onsite management for any MH Park- no matter how small. WHo wants to hassle with that?? Give one of the tenant’s free lot rent. It’s more than worth it.


Re: MH Park For Sale - Posted by George

Posted by George on December 26, 1999 at 13:52:42:

How does someone from NYC know so much about MH’s?