I was using information from Lonnie Scruggs’ books (may he rest in Peace), and I bought Ray Alcorn’s book/instructional manual “The Dealmaker’s Guide to Mobile Home Parks”, along with “Investing in Mobile Homes With Land”, by Tony Colella and Scott St. Aubin. I felt I had a good basis for evaluating a park’s viability, its profitability and establishing an offer range appropriate to it’s revenue, but there was only one problem: Not enough parks in areas that provided viability, and those that did, had investors bugging the owners by the dozens.
Anyone want to let me know if this has changed in 2025? I can see myself getting back into the buying mood within a year, if perhaps the “climate” has improved.
Availability is still a challenge, so finding off-market deals and networking with park owners can give you an edge. Some secondary markets might offer better opportunities with less competition. Out of curiosity, what areas are you looking at?
It was around 2005 - 10, but I started in Phoenix, right in my own neighborhood. There were 3 or 4 properties, ranging from a couple dozen spaces to 60 spaces. All were in need of updating so they had decent upside, just from appearances alone. I contacted ownership via mail. Mostly local owners. No interest in selling, and I remember receiving a nasty letter back from one owner who claimed he gets 4 to 6 solicitations per week “from people who want my park” and he was not happy about it.
I expanded my search into the surrounding metro area, and eventually into Utah, Colorado, and then the mid-west. I found better availability in the mid-west, Missouri, Kansas, etc., but parks were extremely overvalued, or they were so far out in the boonies that there were no employers nearby.
I remember one where the outdoor furniture factory had closed two years prior, and the plant was shuttered. The town and the adjacent mobile home park were becoming vacant. I could’ve had that one, but I just didn’t see any upside to buying a few deck chairs on a sinking ship.
I probably should have been more persistent, but “life” got in the way, and I spent less time prospecting and more time trying to put two kids through college. They’re both grown men now and my small business is doing well. Soon, I will be converting liquid assets into passive income holdings, so I’m looking at things I know are good, like MHPs.
Sounds like you’re in a great position to jump back in. If I were in your shoes, I’d focus on secondary markets with strong job growth—there’s still opportunity if you’re patient. Also, creative financing options like seller financing or partnerships could give you more flexibility. I wish you the best in your search, and I’d love to hear how things go for you!
When I say “soon”, I’m not really sure what that will mean, as it is a huge variable. I am expecting the ability to bring sizeable cash to the table to become a reality, so, yes, that will also be a good incentive for any seller-financing or commercial lender funding.
We’ll see, but I’m not one to leave the due diligence to the last minute. I have my hands full running a couple of small businesses right now, but the long-range plan is to either sell those, or convert to auto-pilot by working with several management models. At that point, cash can be moved into assets that create ongoing passive income.
Again, thanks for the good word, and I’ll probably be back here as things progress.