Real Estate Rookie 86: Rookie Reply: What Should I Look Out for on Mobile Home Parks?
This week’s question comes from Adri on the Real Estate Rookie Facebook Group. Adri is asking: I came across a seller financed mobile home park, this would be my first out of state investment. What should I be looking out for on MHP (mobile home parks) and is this a huge jump to make while still being a rookie?
While we can’t answer how ready Adri is for investing in a mobile home park (we believe in you), we can answer questions about what to look for when evaluating a MHP deal. Before you consider investing, you’ll need to look at some mobile-home-park-specific factors.
Here are some suggestions:
- Make sure you get accurate financials, especially a T12 rent roll
- Look at the utilities and see whether they’re public or private (wells and septics)
- Look at the capital expenditures (capex) of the entire park
- Find out who owns the trailers/mobile homes and evaluate whether the current ownership is advantageous to you
- If you’re still nervous, partner up with someone more experienced!
- And more in the episode…
If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).
Links from the Show
- Real Estate Rookie Facebook Group
- Rookie Podcast 65: Multifamily, Mobile Home Parks, and Commercial Deals: All in 2 Years! with Tommy Polise
Check the full show notes here: https://www.biggerpockets.com/rookie86
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