Most Important Factors to Consider When Investing in a Mobile Home Park

Making the decision to invest in a mobile home park is not something to take lightly. There are several factors you should consider before making such an investment. Some of these factors include: the location of the property, the projected market value of the property, and its condition.

Most Important Factors to Consider When Investing in a Mobile Home Park:

• How knowledgeable are you about mobile home parks? To gain knowledge of how mobile home parks are operated, you should attend workshops. Some of these workshops are found at
  Mobile Home Profits and
  Mobile Home Boot Camp.




• Is the property location marketable? If this mobile home park is in a dangerous neighborhood, you have several risks to consider. These risks include: theft, damage of property, and potentially dangerous situations for your tenants. Research the crime rate in the area to evaluate if this investment is worth the risks.




• Will you live at this mobile home park or hire a manager? When investing in a mobile home park, you have the option to live on the property or hire a manager to manage the property. When making this decision, consider the costs of hiring a manager versus managing the property yourself.




• How many mobile homes are present on this property? If there are mobile homes already on the property, you have the opportunity to rent out these properties. Realize, however, that you are responsible for maintenance and upkeep of these rented properties. Factor in maintenance and upkeep of these properties into the amount of rent you will charge. You should also analyze your potential earnings based on the number of lots available. You will charge lot rent for any properties that are setup on this property. This will include mobile homes owned by your lot renters. You are not responsible for maintenance and upkeep of properties you do not own. You will simply collect lot rent from these tenants.




• What is the condition of the existing mobile home park? Evaluate the condition of the mobile home park. Most mobile home parks already have existing septic tanks, utility setups, and power poles. Evaluate the condition of these fixtures to determine if repairs are necessary. Evaluate the condition of any mobile homes already on the property. If these properties are not up to code, you are required to bring them up to code or remove them from the property. These evaluations will determine if the asking price for the property is justified.