Podcast Episode #12: Four Mobile Home Park Deals For Jay

Glenn Esterson has a great deal of experience in the mobile home park space. He’s currently working on several deals. For today’s episode, he’ll be discussing mobile home park deals with Jason. The pair explore why or why not each deal would work for Jay. See the comparisons below.

Mobile Home Park deal 1: cottages on the river

This lot is located in Pennsylvania. Within a day of debuting, the deal received 7 full priced and competitive offers. “It comes with 78 spaces at a $3million sale rate, and an 8% cap rate” says Glenn. The property is made up of land lease and lot renters, making them tenant owned cottages. These cottages have the aesthetic of single family homes while remaining mobile. They are durable, and owners are more likely to stay.
Glenn says one drawback is it has its own septic. The homeowners are in charge of that, but enforcement can prove tricky. You can take action if the homeowners refuse to handle damages. But, eviction can still lead to you having to assume financial responsibility. This can prove costly, especially for first time park owners. In all, the demand of this deal could be overwhelming to newbies. Still, it’s an example of an attractive property done right!

Park deal 2: Smyrna, FL

This deal is a bit closer to Jason’s speed. The 50 space, lot-rent park resides in the sunshine state. It’s a consistent revenue-maker in a safe area. It would take about $50,000 in renovations, which likely means an increase in lot rent. “It’s a little challenging and a little bit scary from the financing side of it,” says Glenn. The scope of the park allows for rent increases to stay low. And, it still isn’t as high maintenance as the last option.

Park deal 3: Orangeburg, SC

The next property discussed is a 36-unit park owned home in SC. The owner has had it for a long time. Glenn admits “the market there in Orangeburg is a little challenged”. The entire population are stabile renters. “The scariest part is there are only hand-written books and records… It’s impossible to figure out which income is from which source.” Valued at $800,000, the bookkeeping complications make it impossible to finance.

Park deal 4: Small park portfolio

This small portfolio in Wilmington, NC includes four parks (160 spaces). All four are within the nicer top 10 parks in the area. It’s valued at just over $6million. Many of the homes are modern, with one park being roughly a year old. This keeps maintenance low.
“With there being 4 parks, does that mean 4x the due diligence costs?” Short answer, yes. But potential revenues and savings are worthy of an eyebrow raise. The infancy of the new park is a blessing here as well. Many of its licenses should be up to date and within arms reach.

Staying virtuous in Mobile Home Park Deals

“I want to like what I’m doing,” Jay expresses. He admits to finding some of the issues posed in the field daunting. Still, it’s a thriving industry that somehow remains untapped by and large. It’s worth it to explore, albeit ethically. Listen to the full podcast above.

Podcast Transcript:

Jason Sirotin:
Hello, and welcome to the Mobile Home Expert Podcast. I’m Jason Sirotin here as always with Glenn Esterson. Glenn, how are you?

Glenn Esterson:
I’m doing fantastic. Thank you.

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