Re: mobile home park construction - Posted by Lonnie
Posted by Lonnie on May 13, 2000 at 07:20:36:
The reason I don’t talk about developing a MH park is because I don’t recommend it. It’s a tremendous under-taking, even for an experienced developer. Wendy (Houston) asked that question on the MH forum, and here’s what Ernest Tew says. I agree 100% with Ernest.
"During my twenty plus years in the mobile home park business, I have developed two parks and owned and managed several others. If you are not an experienced developer, I would not recommend attempting to develop a park. Even with experience, I wouldn’t do it again.
Your time would probably be more productive searching for an existing park that you could buy at a low price and enhance its value by providing good maintenance, better management, and a better marketing program.
We have been able to buy parks at prices far below the cost of replacement because they were poorly managed and half vacant. With a newly developed park, you would start out with 100% vacancy and probably have a higher cost than you would with one half occupied. Depending on the local market and your marketing ability, it could take years to reach the break-even point." Ernest Tew.
Hope this helps,