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

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 12 June 2021

⏱️ 9 minutes

🔗️ Recording | iTunes | RSS

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Summary

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 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Real Estate Rookie, Episode 86.
0:07.3	My name is Ashley Care and I am here with Tony Robinson and we are back with another episode
0:13.6	of Rookie Reply. Tony, what do you have for us today? You guys know the drill. Before we get to
0:20.4	the episode, let's hear a word from our show sponsor. This episode is brought to you by Crankin.
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1:23.8	I've got a question about mobile home parks and I know this is kind of an exciting asset class
1:28.6	that you and I both talked about. But today's question comes from Adrian Juzak and Adrian's question
1:34.6	is I came across a seller of financed mobile home park. Seven units that are park owned
1:40.5	just under a thousand a month cash flow and incorporate a 15.34 percent. This would be my first
1:46.8	out of state investment. What should I be looking for on a mobile home park and is this a huge
1:53.0	jump to make while still being a rookie? Thank you. I'll kind of share my thoughts first ash and then
1:58.1	I know you're a little bit more familiar with this asset class. But I want to touch on the second
2:01.9	part of Adrian's question first about is this a huge jump to make while still being a rookie?
	...

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