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I have started to evaluating two MHP’s in my area, one has 38 pads, 2 apartments and 10 sites of future expansion. An old park with a lot of rentals and would really need a lot of hands on work to turn this park around. After reading several of Ray’s articles on mobile home rental tenants being “the bottom of the barrell” tenants I decided to put that deal on the back burner as I am not in a position right now to support the maintenace and turnover.
It was then brought to my attention about another park on 34 acres of wooded land with a pond, etc… Very nice park with 13 pads occupied and 23 RV sites. Asking price, same as first deal $475,000. How do you evaluate the RV site income ? Is it possible to convert these to Mobile home lots ? I don’t have many details yet but I’d like to go in asking all the right questions.
Re: How do you evaluate RV sites in MHP ? - Posted by Cheryl Lopez
Posted by Cheryl Lopez on May 08, 2004 at 20:22:33:
KEITH –
About your question “Is it possible to convert these [RV sites] to Mobile home lots?”
The answer: Yes. I know here in California HCD (Housing & Community Development) does allow a conversion of 2 RV space for 1 mobile home space.
If the park is not in California … then you need to check with the department in your state that is responsible for the code enforcement of RV & mobile home parks. Also the local city or county planning department may be of help on the change from RV to mobile home use.
By converting the RV spaces to mobile home spaces would greatly improve that park and your investment and as Ray pointed out in his post … less management headaches for you.
Mixed use properties in general are tough deals. An RV Park is a business, and as such changes the entire nature of the property. A business must be operated to produce revenue. That means somebody has to show up each day to do what has to be done… answer the phone, collect the revenue, aid with hook-up problems, make sure the waste tank get pumped, etc. That somebody may be the owner, or it may be a manager/employee/resident… but somebody has to be there. The revenue stream depends on it. Even so, the manager of a small operation often makes more than the owner.
What you are describing is a business that happens to have some permanent visitors, not a mobile home park. The beauty of a pure land-lease mobile home park is that you are renting dirt, and there is very little need to have to visit the dirt each day to make sure it is still there.
If you are pressed for time, you may want to think twice before taking on a business.
Re: How do you evaluate RV sites in MHP ? - Posted by Doreen Stoll
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Re: How do you evaluate RV sites in MHP ? - Posted by Luke Turner
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