MHP Purchase questions - Posted by BJY

Posted by GerryH on January 28, 2002 at 11:46:57:

Just for the record, much of the information on that website is outdated. Many of the MHPs are no longer available.

MHP Purchase questions - Posted by BJY

Posted by BJY on January 28, 2002 at 01:04:49:

I am looking for a MHP to purchase with approx $100k to $150k to invest. I have purchased Ray Alcorn’s “Deal Maker’s Guide to MHP” book and found it to contain some very good advice.
I am doing most of my looking through the mobilehomeparkstore website - and am surprised at how many listings there are. That’s what makes it a challenge. I’m seeing very wide range of pricing and CAP rates. I have the following comments/questions and would appreciate any comments.

  1. Out of state ownership - most people say don’t do it on your first one (which this would be). Many of the owners I contact are in fact absentee owners. What are the top 3 bad things that can happen to an absent owner (assuming 1 vist per quarter)? The reason I’m looking out of state is the Colorado listings are scarce and seem way overpriced.

  2. North vs South - Sunbelt propery is usually more expensive and there have been some recent Midwest/Northern listings that seem really attractive numbers wise (ie high cap rates) Anything special to watch out for in colder climates? Harder to resell, etc? Can you submeter water in freezing climates?

  3. Since I have Ray’s book, do I need to buy Ernest Tow’s book also? (How to get Rich Helping other people).

  4. Lower quality parks - I’m sure these high CAP rate parks are not high in curb appeal, but the cash flow is good. How much can you really improve a property (Market value) in a small town with steady population, etc. Can you hope for much upside or just depend on the solid cash flow?

  5. Regarding Lonnie deals, are there any special twists on the strategy for people who have larger amounts to invest?
    (ie 50k to 100K)