The MHP Expert will teach you how to follow the money all the way from the mobile home park to the bank.
Knowing the Park’s Rent History
Prior to purchasing your mobile home park, the MHP Expert Glenn Esterson, will make sure you know exactly what to ask in order to get the best return on your money. Before we can move to the future, we must discuss the past. Asking about rent history, provides further detail on how the current renters in your potential park are being treated. When was the last rent increase? What is the current lot rent average, high, low? How about the POH rent? What does the owner currently consider the market rent to be? While it is vital to gather this information from previous owners, it is just as important to complete your own research on the current market value to make sure they match up. What is the current gross income? How many evictions occur per year, if any? This will help you determine how the current and/or potential renters behave and what your future may hold.
Investigating the Park’s Current Tenant Base
Let’s take a look at potential mobile home operating costs that could affect your MHP purchase. We understand that we have covered a lot of information, but the MHP Expert believes in all his services, and has seen time and time again the value that they can bring. Before making your purchase make sure you view the MHP Must Ask Questions Checklist. How many lots does your park offer? This will determine how many spots you can rent out. Are there any vacant lots? If so, how many, we want to fill these and create a higher return on your money. What is the average age of the tenants in the community? Is this a younger family park, or an older family park? What kind of people is this MHP attracting, and is it the kind of demographic you are looking for? And lastly, how much monthly turnover is there? This will help determine when you need to start advertising more for new potential tenants.
Dealing with Park Owned Homes
With each mobile home park, you need to know how many park owned homes there are. Are you willing to invest into a place where most of the homes are rented rather than owned by the tenant? Each has their own benefits and downfalls. The MHP Expert wants to ensure you know the number of POH/ RTO/ LP/ gifted homes and vacant lots? What is the average age of the POH? Do you have titles for each POH? Do any, and how many units need to be repaired, and what is the main repair request? This can be the difference between small repairs, or large, costly repairs. Are the skirts and roofs on the homes in good working shape? If not, what needs to be done to make the mobile home park in tip top shape? What is the average POH rent? Through your own research and renters history you can determine if this is a reasonable price point for the homes offered.
For any and all MHP related questions and services, there’s the MHP Expert.
Never worry about missing a question with the MHP Must Ask Questions Checklist brought to you by the MHP Expert, your leader in all MHP needs.