Developing Your Mobile Home Park | Mobile Home Park Instant Offer
Developing Your Mobile Home Park
Many mobile home park owners went into what they that was a good investment opportunity in the late 1990s and early 2000s. Many mobile home park owners got into the business with a low downpayment, possibly some owner financing, and some minor issues that they were able to clean up pretty quickly. However, over the years, these mobile home parks had the potential to become a drain on their financial capital. In addition, the high overhead of maintaining it complicated their goals of further developing the park. Let’s look at some of the reasons that an initial investment in a mobile home park might sour.
Issues with mobile home park ownership over time
Older mobile home parks will often create many issues for their owners later. These include:
Master-metered electrical and gas systems.
Private sewage water treatment.
On-site drinking water.
A high density of mobile lots for the property.
A location in a sparsely populated area or with low home prices.
Issues with legal permit status.
A master-metered electrical or gas system will cause several different issues. First and foremost, the owner likely covers the cost of these utilities. Secondly, investing in submetering can be quite an expensive endeavor. Additionally, problems with the systems will ultimately be the responsibility of the owner to remedy.
Private sewage treatment and on-site drinking water (like a well) present similar issues. When a septic system breaks for the entire park, the repair or replacement cost can run several hundred thousand dollars.
Location is critical when purchasing a mobile home park. A sparsely populated area will net a lot of vacancies, and dealing with unit turnover will prove difficult. If home prices in the area trend below the state or national average, you will struggle to fill your lots
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Many older mobile home parks also lack good legal standing with their permits. This can create issues across various fronts, from construction to tax issues. In addition, legal issues can result in fines and costs that make running the park expensive.
Many older mobile home parks are jury-rigged
To get by, the previous owner of your mobile home park likely implemented temporary solutions to large-scale problems. For example, some older mobile home parks might be retrofitted with propane at each unit, hoping to connect to a gas line with the city later. Unfortunately, this can result in a difficult situation for the future owner and abate further goals for developing the park.
Get a cash offer on your mobile home park
Mobile Home Park Instant Offer will work with you to arrive at a fast cash offer. If you are unable to develop your park further because of its problems, we can make you an offer so you can have a viable exit strategy.