What should I expect for expenses? I use the 50% rule with Multi Families and SFH, but what about trailer parks? Is it more or less than 50%? Property Manager please help???
Thanks
I can’t tell you a number, but if your going to buy one, I do know you MUST have city utilities, no septic or well. Your not a utility company, your a landlord. Keep it that way. This isn’t just rumor I’m repeating, I am friends with a local guy who use to own 4 parks in this area. He quickly sold all of them except the one he still has on city utilities.
Cooley,
Sorry, I don’t know the answer. I don’t know if there is any accurate data out there for mobile home parks. There are some mobile home park owner’s associations around and I will be starting to attend soon. What I do know so far is that it’s like everything else in real estate - the gurus hype the positives and conveniently forget the negatives. For example, in my little corner of Ohio, the setout fee for a mobile home eviction is $1,000! So, when the deadbeats stop paying, not only do you lose the lot rent, but you get to pay a $1,000 setout fee to have their mobile home removed by the court. OUCH!
A friend of mine has a fairly large mobile home park and I can tell you that her tenants are at least as bad as my low income tenants. Finally, there are a lot of regulations regarding mobile home parks that require absolutely KNOWLEDGE before you buy, or you can be in a world of hurt. For example, modern setback requirements may mean that when a mobile home leaves, it can not be replaced!!!
My suggestion would be to do whatever it takes to understand these issues before you buy a park. I would start by finding a park owner’s association and making friends with the successful owners. That’s what I will be doing.
Mike