Purchasing a Mobile Home Park

Mobile home parks can be a good investment, and provide income in many different ways other than simply the lot rentals. Mobile home park owners can create an income by park-owned mobile home rentals or sales, laundry and vending services, or even storage facilities that can be rented out to tenents.

Mobile home parks can be a steady source of cash flow, and are relatively low maintenance. Mobile home parks on the outskirts of major cities can experience significant appreciation in value as the city grows.

When looking for a mobile home park to purchase, be sure to do your due diligence. Try to identify anything about the park that you may not be able to change or fix. These could be problems with the water, sewer or gas line, drainage problems or other geographical issues. You should evaluate the information you receive from the seller and compare it with any information you get from outside sources. Make sure the park has any required licenses and is complying with the license. Evaluate the water sources and sewage lines, and make sure they are in good shape and haven?t collapsed. This could be costly to fix. Evaluate the electric service, as most new homes require 100 to 200 amp service, and many older parks have 30 to 50 amps service, requiring an upgrade. Be sure to find out whether the roads are in good repair, as roads are often one of the most commonly complained about issues in mobile home parks.

And of course, if you?re in it for profit, evaluate, line by line, all the financial information provided to you by the seller and verify everything possible.

Read about Mobile Home Park Financing

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