Thinking of Buying a Mobile Home Park as an investment

[ADLAADS]

Any fellow retirees own a Mobile home park as part of their income stream? Would love to ask some questions via PM or emails.

 

[calmloki]

Any fellow retirees own a Mobile home park as part of their income stream? Would love to ask some questions via PM or emails.

As an unintended consequence of making property loans we ended up with a 19 unit mobile park that had been run into the ground. Loan was to be used to bring the place into proper repair. Didn't happen.
Mobile home residents without water after owner fails to pay bill | Local & Regional | KATU.com - Portland News, Sports, Traffic Weather and Breaking News - Portland, Oregon

By the time we took ownership the city water bill was $7000, the septic tanks were all non-functional, and there was one remaining very cranky (rightly so) old couple whose trailer we bought just to be able to do the work that needed doing - as well as 4 other abandoned mobiles that presented a legal challenge.

We have rental apartments and I don't see mobile parks as attractive. Your tenants live in trailers that they own, making it tougher to evict the duds. You need an onsite manager and a great caretaker. Google Lonnie Scruggs to get a feel for how I view mobile park owners. Of course people without rentals may view all apartment owners as slumlords, which is equally wrong, but mobile park ownership isn't for me - we worked hard and sold the place cheap as soon as it looked like a plausible venture - with no tenants.

 

[SumDay]

The only way I would do this would be if:
1. It was a VERY nice 55+ only community in Arizona or Florida, or... and
2. Someone sold it to me for $1 and they said they'd manage it for free just because it's so much fun.

Seriously, I'd rather w*rk another 10 years in addition to the 3 I already plan to work than do this.

Do you have previous real estate experience? It is NOT passive income. Be prepared to pull your hair out.

 

[bld999]

Get on netflix and watch a few episodes of "The Trailer Park Boys" and you will be cured.

Seriously though, a good friend of mine owned one for 7 years a while back and was relieved to get shut of it, and he has owned several residential mf properties, plus a bunch of light commercial.

The park residents were driving him nuts with left-field claims and demands fairly constantly. Admittedly, some were stand-up people, but the outliers...

 

[eta2020]

What is Trailer Park Trash?

Some people made bundle in Trash business though. Looks like collecting quarterly dividend from KO or VIG is easier

In the other words it may not end up being "income stream" but one big headache and lot of work.

 

[daylatedollarshort]

I think it would be pretty cool to own a tiny house village. You might get more of a Sierra Club / minimalist kind of clientele.

 

[Fermion]

Go for a self storage facility instead. Much easier to evict (just put padlock on door and hold auction in a few months for $$$).

 

[Rick_Head]

Think again.

 

[aja8888]

Any fellow retirees own a Mobile home park as part of their income stream? Would love to ask some questions via PM or emails.

I think there are worse forms of punishment, but I can't think of any without spelling in detail out and violating Forum rules.

Maybe a California divorce...but that has an end to it at some point in time and you can estimate the alimony and child support easier.

 

[Mulligan]

My father and his wife owned a small one with the trailers and rented them out. Yes there some good renters but the bad ones made it a constant source of problems including getting the rent. He had to go through eviction process to a small town cop one time because even he wouldn't pay. He finally unloaded it on someone with owner financing and fortunately they are still paying as he doesn't want to take it back. Nothing short of law changes allowing threats to burning the trailer down with them in it or ability to beat the crap out of them for non payment and refusing to leave would I even consider doing it based on my dads experiences.


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[Htown Harry]

I see development plans in my local government j*b.

There are very few mobile / manufactured home parks being built these days, but relatively speaking we are seeing quite a few new RV parks being built in suburban areas. This is in a county with no tourism to speak of and, so far as I know, no significant snowbird population. And we're far from the oil boom areas where man-camps and other short-term housing solutions are being driven by seasonal or itinerant work.

Driving through a couple of them, it appears a significant number of the inhabitants are set up for a very long stay. There's clearly a group of residents who have downsized to an RV or travel trailer as their housing solution. (I didn't see anyone who looked like Jacob Fisker, though. Early Retirement Extreme: — a combination of simple living, anticonsumerism, DIY ethics, self-reliance, and applied capitalism )

One large RV park is located near the Texas Medical Center, apparently catering to both short-term and longer term rentals. Their location-specific niche is folks from outside of Houston in town for medical care, say a month-long series of cancer treatments.

I have no idea idea what the economics are, but there seems to be some money to be made. And I'm guessing the landlord-tenant relationship would be covered under lodging laws rather than real estate laws, where the ability to prohibit access, cut off utilities or evict by force are probably more favorable to the landlord.

No advice here, just observations.

 

[Music Lover]

The phrase "trailer trash" exists for a reason...

 

[daylatedollarshort]

Mobile homes are a very cost efficient way to live. I have wondered if the negative connotations we sometimes see in the media are more marketing oriented because the homes cost less to build and are smaller, which means less to furnish and less hyperconsumption overall. They may end up being a good source of housing for aging baby boomers who have no savings other than SS. I don't have the personality type to run a mobile home park, but I think a 55+ park could be a good investment, especially in areas like California where regular housing prices may be unaffordable for seniors living on SS alone.

How the Trailer Park Could Save Us All
http://www.psmag.com/books-and-culture/how-the-trailer-park-could-save-us-all-55137
"A healthy, inexpensive, environmentally friendly solution for housing millions of retiring baby boomers is staring us in the face. We just know it by a dirty name."

 

[folivier]

I would think an RV park with proper amenities and nicely landscaped would be a much better situation than a mobile home park.
Spend a bit of time at Escapees Discussion Forum
There are quite a few retired Rv'ers that volunteer their time helping run campgrounds for as little as a free space with paid utilities. But yes you would have to be observant to keep residents from living there long term and setting up homesteads. But as a campground it would be easier to have the set of standards you prefer to attract the type of residents you prefer.
We've rv'ed for a few years and found most rv'ers are very friendly.

 

[ls99]

I read somewhere that a trailer park was purchased, rents raised and a sign put out front, sex offenders and parolees live here.

The rationale was, with probation officers and cops routinely and randomly present to check on "clients" kept drugs and pushers out, no little ones to make noise, no need for children's playground. Since these folks have difficulty finding living quarters, this was a fine solution.

The owner liked the results so much he now has several and looking to convert more parks to the same theme.

Surely not for me though, Even if it works well it would be too much hassle and cut into my various sporting endeavors.

 

[Fermion]

I read somewhere that a trailer park was purchased, rents raised and a sign put out front, sex offenders and parolees live here.

The rationale was, with probation officers and cops routinely and randomly present to check on "clients" kept drugs and pushers out, no little ones to make noise, no need for children's playground. Since these folks have difficulty finding living quarters, this was a fine solution.

The owner liked the results so much he now has several and looking to convert more parks to the same theme.

Surely not for me though, Even if it works well it would be too much hassle and cut into my various sporting endeavors.

Didn't I see this on Arrested Development?

 

[ls99]

Didn't I see this on Arrested Development?

You may well have, however in real life:

Trailer park becomes 'paradise' for sex offenders - CNN.com


And another one:

http://www.theguardian.com/lifeands...ailer-parks-mobile-home-university-investment

"
Lee, 70, says she was advised that if she took in sex offenders the drug dealers would leave. “So, I started taking in sex offenders, and I have a very clean property. Sex offenders are watched by the news media, the TV, the sheriff’s department, probation, the department of corrections ... so when they are in there, the drug dealers and the other people don’t like to be around.”

Sex offenders have been good for Lee financially, with park occupancy running at “1,000%”. She rents trailer pad spots for about $325 a month. The trailers are either owned by the tenant or rented from a third party. Many trailers are divided into three bedrooms, for which tenants are charged $500 a month per room.

Lee claims she was once offered $5m for Lake Shore Park, which is home to about 50 trailers."

 

[Brat]

Sex offenders need to live somewhere. Siting may be a challenge as most offenders cannot live near schools or other places children congregate.

 

[rodi]

I would agree that some parks in snowbird country, that are 55 and older, might be different than a non-restricted (by age) type place.

My aunt lives in a park. She owns her lot and her trailer. She's part of the 20% that are year rounders, the other 80% are snowbirds. It's a 55+ community in AZ.

Some of these manufactured homes and trailers are so fixed up you can't tell they're not stick built... She lives across from an adobe style home for example.

Perhaps because it's individually owned lots, there isn't a lot of "trailer trash".

 

[imoldernu]

As with most subjects, there are degrees.
Our FL Park is attractive, well run and active. Rules and regulations are appreciated and obeyed by everyone. Started in 1987, it is nicer now than when it was new.

Florida is not the only place for well run, well regulated mobile home parks... the term mobile home is usually applied, but many are manufactured homes, and rated as modular homes and'or HUD homes.. (moveable)
Here's an example of one in Frankfurt Illinois. One of our campground friends bought a home there and is very happy with the building and the neighborhood.

Shamrock Homes. Building quality since 1969.

 

[Mulligan]

Mobile homes are a very cost efficient way to live. I have wondered if the negative connotations we sometimes see in the media are more marketing oriented because the homes cost less to build and are smaller, which means less to furnish and less hyperconsumption overall. They may end up being a good source of housing for aging baby boomers who have no savings other than SS. I don't have the personality type to run a mobile home park, but I think a 55+ park could be a good investment, especially in areas like California where regular housing prices may be unaffordable for seniors living on SS alone.

How the Trailer Park Could Save Us All
http://www.psmag.com/books-and-culture/how-the-trailer-park-could-save-us-all-55137
"A healthy, inexpensive, environmentally friendly solution for housing millions of retiring baby boomers is staring us in the face. We just know it by a dirty name."

I hope they are in pleasant weather areas or they are better built now. I remember in the late 80s just starting my career and being "trailer trash" with 2 other guys. The damn heating bill in winter was about $400 a month. Thank God the bill was split 3 ways. It was higher than the rent! Almost 30 years later my home heating bill never peaked above 1/3 of that and I live in same area.


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[retirementguy1]

When I read Millionaire Next Door I remember the author mentioned that there were many millionaires that made their fortune from mobile home parks. They didn't own one though, they had 12, 24, or 100 parks. I'm guessing you really need to turn it into a conglomerate to make it profitable. You need to start a property mngt. company, have a lawyer on retainer for evictions, your own repair/rehab men etc. The list goes on. I have no immediate experience so YMMV


I do love trailor park boys though.

 

[Walt34]

I suppose it depends on the clientele and the management. A few miles from us are two trailer parks, across the street from each other and what a study in contrast they are! One is the stereotypical "trailer trash" type place and where they get the photos of them from. When I drove through the place (out of curiosity) I wanted to be carrying a weapon.

Across the street is another, well kept one. Neat as a pin, all are clean and well maintained, paved streets, lighted at night, no trash or toys left out overnight. I mentioned to DW that if we ever had to seriously downsize I wouldn't mind living there, other than the lack of a garage. One could certainly do worse. If there is such a thing as an upscale trailer park that place is it.

 

[haha]

I hope they are in pleasant weather areas or they are better built now. I remember in the late 80s just starting my career and being "trailer trash" with 2 other guys. The damn heating bill in winter was about $400 a month. Thank God the bill was split 3 ways. It was higher than the rent! Almost 30 years later my home heating bill never peaked above 1/3 of that and I live in same area.


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Not long after we were married my wife and I were spending a day at Pismo Beach, a really beautiful spot. She had taken her ring off and put it in a shirt pocket so she could dig in the sand. I believe we were running and at one point she realized that her ring was gone. We both felt awful, but she managed to turn around and retrace her steps, down to remembering when she had jumped over something. She got down and started digging in the sand, and unbelievably there was her ring! Ever since I have had a good feeling about Pismo Beach.

I read the article that Mulligan posted. It's very good. One thing it mentions as a drawback is the poor leverage that people who own a unit but rent a space have. It's a bad situation. Unlike in an apartment, a reasonably priced move is all but impossible if the rent gets raised. Recently a park near Kirkland WA changed hands. But the new owner didn't stop at raising rents, he was going for highest and best use, which in this case is an array of luxury apartments or condos. Typically the residents cannot afford to walk away from their units, and the whole area is undergoing upscale makeovers. There are no other trailer parks close to the job market that served these residents.

I am past the stage of my life where I would want to take on a park as an investment. But I think even to become a resident I would want congruence of lot and home ownership. Either both are rented, or both are owned in fee, or perhaps the lot on a very long term price controlled lease.

But Pismo Beach would be hard to beat. And the very social style of living described in the article would be fun.

Ha