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 parkFind out who owns the trailers/mobile homes and evaluate whether the current ownership is advantageous to youIf 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 ShowReal Estate Rookie Facebook GroupRookie Podcast 65: Multifamily, Mobile Home Parks, and Commercial Deals: All in 2 Years! with Tommy PoliseCheck the full show notes here: https://www.biggerpockets.com/rookie86

Real Estate Rookie