I live in a Chicago suburb and had two multi unit buildings in that area. I also have several single family and duplex rentals about 3 hours south of where we live. In all cases we used professional property managers, and I agree with you, experienced ones are very difficult to locate.
We are wintering in central Florida, (I retired last year, we are moving to Wisconsin this summer), and I have been looking to start a portfolio in Florida like I have in central Illinois. I havent purchased anything yet, but have discovered that Florida is full of property managers with many years of experience.
My point is, if I were in your position looking at the ‘state of the art’ of property managers in North Carolina, it would be of critical importance that the input on the topic be from LOCAL people. I would start with an ad in the paper. You may get lucky and find a manager living in your park.
I’ve been researching MHP’s after being presented with an opportunity to acquire a mid size park in North Carolina (70 homes). The seller is highly motivated and the financials are attractive to me for a buy & hold strategy (superior cash on cash return to my single & multi family investments). My main concern is I know very little about MHP’s other than what I’ve learned from reading this great board for the past two days. (My Lonnie books are on the way). I have the background to analyze the financials but need practical operations advice from those who have been there.
Specifically, insight on the following questions would be very helpful before I fly across the country to kick some tires (pardon the pun).
There does not appear to be professional property management firms specializing in mobile home parks as there are for single and multi-family residential rentals. Are self management or hiring a PM the only two options typically used? How would you have this park managed from afar if you decided to invest in it? Self management definitely is out.
How’s the job market for PM’s in general (and in central NC if anyone has local knowledge)? There’s clearly a shortage of competent multi-family property managers and turnover is a constant problem. Are conditions better or worse in MH’s for hiring & retaining a strong PM? My fear is whether I can effectively manage the park if PM’s quit frequently and I reside on the other coast.
I’m guessing there’s an incremental income stream available if I pursue Lonnie deals within my own park–my PM could bring opportunities to me (for a fee, of course) and make it difficult for other dealers to operate in my park. Putting my inexperience and the geographic challenge aside, is it common for park owners aware of Lonnie’s techniques to operate this way? What % of the total return would you expect to come from park operation vs. Lonnie Deals over time?
There’s probably many questions I don’t even know enough to ask yet but the above feel like the major stumbling blocks right now. Any insight from your experience is greatly appreciated. Thanks!!
I have a few parks. Buy your first park, even if smaller, within driving distance of your home. There is a lot to learn. It is different than owning apartments. You won’t have to visit often, but I would not do a cross country deal the first time.
Steve,
Your question is actually quite common. The owners of my park (northeast Ohio) live in Fla.
They have hired a “Professional Management company” to handle the four parks in this area. The management company hired a property manager who is in charge of all four parks. The company collects rents and pays the bills with the authorization of the property manager.
Now, get this. The company, before this account, had never had “parks” and therefore, had no clue. The guy they hired was actually scouted and offered the position.
I am not able to give you numbers on how much this guy makes but, I think you should be able to get pretty close if you look up “property managers needed” on a web site of head hunters.
Anyway, running a “park” is not rocket science. They just have to be honest, trustworthy and have knowledge of local contractors who can do the work needed with out taking your shirt.
If you do this, I would suggest you spend some time with this individual to get to know them. Also, I would make unannounced visits as often as possible to keep everyone on their toes.
70 spaces could be considered a part time job for someone who is any good.
I have been into park revitalization for some time now and depending on the amount of work you want to do will depend on how busy this person stays.
Good luck.
Bob(OH)
Re: Help - Long Distance MHP Ownership - Posted by Skip (CA)
Posted by Skip (CA) on March 05, 2003 at 14:05:32:
Steve:
For starters try to contact Scott S. in NC. He works Mobile Homes hard down there and is extremely knowledgable. Check out the archives by entering “scott”. His e-mail, I believe, is S0426@aol.com. Hope that helps! Good luck with long distance investing. I’ve just bought my first two houses in FL and am hoping property management there is as good as I’ve had in AZ. My best to you!