Park Place: How to Cash In on the Mobile Home Park Niche

by Tony Ferris

While working on your due diligence, some additional items to keep in mind are, is there a lot of rentals in the area? What's the median home value and are their lots of apartments in the area? If so, how much is the rent? How about a Wal-Mart or McDonalds nearby? What is the population and is it increasing or decreasing? Jobs and unemployment are a huge factor. Are there other parks in the area and what are they charging for lot rent? What is your local competition? Do neighboring parks have high or low occupancy? Are there local amenities and shopping nearby? Does the area have good schools? Are the utilities separately metered or do they have a master meter where the park receives one bill? How are the roads and infrastructure? Is it a safe neighborhood, not necessarily always where you would live but is it safe? Has the park been grandfathered in for the appropriate number of spaces? Have you contacted the local city, police dept. and Chambers to see what’s happening in the area. Is there a hospital in the City? Once you have the park in contract, you want to make sure to stay overnight. Watch the park in the evening and gather information. Good or bad. Take notes of how many lights are on and make sure it matches up to your offer. Talk to the tenants and get a good pulse. The tenants know the park better than anyone else. See if the owner can provide you with the rent rolls, copy of tax returns, bank statements, utility bills, capital improvements, etc. ...