86: Rookie Reply: What Should I Look Out for on Mobile Home Parks?

Real Estate Rookie

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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