Welcome back to the Passive Mobile Home Park Investing Podcast with your host, Andrew Keel! In this episode, Andrew Keel kicks off a new mini-series on some of the top risks associated with owning a mobile home park.
In this first installment, Andrew Keel dives deep into the critical process of converting park-owned mobile homes (POH) to tenant-owned mobile homes (TOH)—a pivotal strategy for many mobile home park investors.
As a seasoned mobile home park operator, Andrew Keel discusses some of the risks associated with transitioning a mobile home park from POH to TOH, providing a step-by-step guide for investors looking to maximize returns while reducing management headaches. He also shares essential insights that every passive investor should know before embarking on this trailer park conversion process.
While mobile home park investing could potentially offer tremendous cash flow opportunities, success largely depends on understanding and executing the park-owned mobile homes (POH) to tenant-owned mobile homes (TOH) conversions effectively.
Whether you're a first-time investor or seeking to improve your current mobile home park portfolio, this episode is jam packed with actionable advice to help you potentially boost profitability and mitigate risk.
Key Topics Covered:
- The pros and cons of owning park-owned mobile homes (POH) vs. tenant-owned mobile homes (TOH).
- A step-by-step guide to converting POH to TOH.
- Common pitfalls to avoid during the park-owned mobile home conversion process.
- How converting to tenant-owned mobile homes could possibly lead to increased net cash flow and reduced management effort.
Tune in now to discover how you can make informed and profitable decisions as a passive investor in mobile home parks!
***Andrew Keel and Keel Team Real Estate Investments (Keel Team, LLC) do not endorse any interviewee. This interview is for informational purposes only and should not be depended upon for investment purposes. ***
Andrew Keel is the owner of Keel Team, LLC, a Top 50 Owner of Manufactured Housing Communities with over 3,000 lots under management. His team currently manages over 40 manufactured housing communities across more than 10 states. His expertise is in turning around under-managed manufactured housing communities by utilizing proven systems to maximize the occupancy while reducing operating costs. He specializes in bringing in homes to fill vacant lots, implementing utility bill back programs, and improving overall management and operating efficiencies, all of which significantly boost the asset value and net operating income of the communities. Check out KeelTeam.com to learn more.
Andrew has been featured on some of the Top Podcasts in the manufactured housing space, click here to listen to his most recent interviews: https://www.keelteam.com/podcast-links. In order to successfully implement his management strategy, Andrew’s team usually moves on location during the first several months of ownership. Find out more about Andrew’s story at AndrewKeel.com.
Book a 1 on 1 consultation with Andrew Keel to discuss:
- A mobile home park deal review (get live feedback on your own deal!)
- Mobile home park due diligence questions
- How to raise capital from investors for mobile home parks
- Mistakes to avoid in mobile home park investing, and more!
Click Here to book the 1 on 1 consultation: https://intro.co/AndrewKeel
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Would you like to see value-add mobile home park projects in progress? If so, follow us on Instagram: @passivemhpinvesting for photos and awesome videos from our recent mobile home park acquisitions.
Talking Points:
00:30 – Introduction to the new series on some of the top mobile home park investment risks and challenges.
01:00 – The ins and outs of converting park-owned mobile homes to tenant-owned mobile homes.
04:48 – Rules regarding how many mobile homes you can sell without needing a mobile home park dealer’s license.
06:50 – Handling tenant turnover and rehabilitating mobile home park properties.
10:05 – The concept of “handyman specials” and how they can impact a mobile home park’s profitability.
12:21 – Tips for marketing your mobile home park effectively to attract long-term tenants.
13:26 – Finding, vetting, negotiating, and financing for “sticky” mobile home park tenants who are likely to stay long-term.
19:07 – Conclusion and final takeaways on managing risks in mobile home park investments.
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Links & Mentions from This Episode:
Ryan Narus’ LinkedIn: https://www.linkedin.com/in/ryan-narus-87293417/
Keel Team’s official website: https://www.keelteam.com/
Andrew Keel’s official website: https://www.andrewkeel.com/
Andrew Keel LinkedIn: https://www.linkedin.com/in/andrewkeel
Andrew Keel Facebook page: https://www.facebook.com/PassiveMHPinvestingPodcast
Andrew Keel Instagram page: https://www.instagram.com/passivemhpinvesting/
Twitter: @MHPinvestors
Quotes:
“[Converting park-owned mobile homes to tenant-owned mobile homes is] not as simple as just, ‘Okay, here we're going to give you the title after we, you know, close on the park.’ There's a lot of dynamics that go into this..” - Andrew Keel
“If you're going to get those (mobile homes) homes back, you've got to make sure that you're providing a good home to the new resident moving in, otherwise, they'll turn over again.” - Andrew Keel
“We’re trying to get sticky tenants. We’re trying to get residents that enjoy the community. They are going to stay there a long time because they’re only paying lot rent.” - Andrew Keel
“That is the gem behind mobile home parks and mobile home park investing is the stickiness of the tenant base once they own their own homes.” - Andrew Keel
Passive Mobile Home Park Investing