My First MHP! Due Diligence?

OK, OK…I now see that MHP aren’t something to be shunned when it comes to creating a passive income. But what are some issues, that should be included in your Due Diligence that’ll make or break the deal?

EXAMPLE: 8 lot park with 7 filled (non park owned) -It has been around for a little over 7 yrs. (I ALWAYS start small when getting into something new)
seperately metered for electric but I think it’s on “well” water.

I’m thinking of placing a bid later this week. Any suggestions for my first MHP would be great.
Maybe a seasoned investor would have a check list?

Sewers? Permits? Fire suppression? water source?

Check with the fire marshall to see what code is and if the place is up to code.

Make sure you’ve got enough water pressure for your hydrants.

Make sure it is OK to move trailers in and out or change the shape and number of spaces.

Check with the local police to se how many calls they make to the property.

Check your local eviciton law, becasue getting a non-paying trailer out isn’t the same as evicting atenant from a house.

Be aware of deferred maintanence. repairing roads can be expensive. Is the exterior plumbing up to code?

I agree with Tatertot, the main issue is making sure you can at least fill your vacant lots when they become vacated.

I have dealt with parks on well and septic tanks for the last couple of years in VA and have been suprised on how little trouble they produce.

We do not have fire hydrants at these parks and there are none within a couple of miles and from my experience on seeing MHs burn, fire fighters have rarely needed more than what they can provide with a couple of engine trucks when it comes to mobile homes.

As for evictions of mobile home lot vs apartment or home renters has not been a problem for me in VA, KY, IL, MO, SD, TX, or TN, for the most part I think it is easier. Usually we simply evict the resident and place a contractor’s lien on the home and go after the home for the rents owed.

I suggest getting the Books and CDs by Dave Reynolds and Frank Rolfe at before getting to far into MHPs. They cover everything you could imagine and more. They really know their sh…stuff. I actually made an extra 25k of my last deal because of Dave.

Anyways, good luck and make a lot of money.

Richard Stephens

Thx guys, but the owner has decided not too sale. He personally called and said that my offer was the best, and wanted to know if he could keep me in mind in the future. I said sure, but no guarantees on what I’ll offer and he said we’ll sit down and talk about it! :slight_smile: I asked why, and he said that his daughter and her 4 kids moved back in and retirement wasn’t an option anymore! Now, I’m back to square one.

I chose that site because I’m familiar with that area. Would you suggest buying in another state?

Out of state ownership is easy if you have the right managers. Sorry to hear about your deal falling out of reach.

Richard Stephens

One of Dave’s books, I think its callled " INVESTING IN MOBILE HOME PARKS", he list about 52 points on Due diligence.

I just backed out of a deal Monday, the first day on my 30 days of due diligence after I talked with a state EPA inspector, the MHP has major sewer problems and would cost over $100K to fix.

In california there is a state agency just for MPH parks mabye there is one in your state.