Mobile Home Parks 101.ORG
Brought to you By Gorial Realty LLC, Leaders in the Mobile Home Park Industry.
Learn more about Mobile Home Parks for sale.
Some Mobile Home Park Facts designed to help the first time buyer understand Mobile Home Parks for sale and the facets of different types of mobile home parks including what sets them apart from each other and what conditions in a mobile home park for sale are more desirable then others.
Lets start with density. density is an important factor to consider. A 40 site mobile home park for sale on 10 acres of land is far more desirable than a 40 site mobile home park that only has 4 acres of land. In the case of 10 acres you typically have 4 homes per acre which is enough room to accommodate mobile homes that are known as sectional or doublewide homes. The 40 site Mobile home park which has only 4 acres is packed with 10 homes per acre and is much less desirable because it is a diminishing return. Eventually two or three spaces need to be combined to make one. The older the homes the less in value, the less in value the more transient the clientele for that type of home becomes. What is easier to walk away from, a doublewide that you just signed your life away to the bank or some 3,000 old tin can that you purchased on contract for a dollar down and a dollar a day? It is always easier to lose the tenant who is in a older less valued mobile home. The less the home becomes in value the less the home owner has to lose when thinking about leaving. The Mobile home park owner in this case is typically left with an abandoned home and a few not-so-cheap options to go forward. The newer homes seem to carry a higher pride of ownership. You have more willingness to comply with park rules and regulations it seems with tenants who have a newer mobile home. One sure fact is that your community is worth more when you have all new homes verses all old homes. Banks will lend easier on a park with new homes more so than they will with a park of all older homes.
So now you see the importance of density. Not just now but in the future as well. The trend has been build them better and build them bigger. Long story short, your preference when buying should be towards the park with larger lots. If you will sacrifice and purchase something with smaller lots, make sure you are paying the right cap rate and cash on cash return.
Should you have any questions about this site or any site within the Gorial Realty Family of web sites feel free to call upon us for answers.
-Samer N. Gorial, and John P. Gorial of Gorial Realty LLC (866) 66 PARKS