In our previous entry, I discussed using the funds from my first investment endeavor to purchase my first trailer park. This would prove to be a challenging, but worthwhile effort. Especially since I opted for MHP owner financing, meaning I fronted the capital for the deal. It took probably 6 to 12 months to actually find the park and initiate the investment. It has 35 spaces, give or take, and was located in Eastern Tennessee.
It’s difficult to say whether this was a good or a bad investment. It came with considerable cash flow, but it also took a considerable amount of work on my part. It wasn’t the easiest option by a long shot. But, it taught so much about the industry; the lessons are some that I still employ to this day.
Returns On Mobile Home Investing
By the time I got into the trailer park in 2003, I had already been managing apartment units for some of my clients. This gave me some great insight into the management side of operations for apartments. But, much of this did not translate into the mobile home space. For starters, the tenant base and repair needs were much different between the two.
I’d spend 10 to 12 years owning the park, a time span that included the great recession. Once I sold it in 2015, I was able to get a decent value for it. I chose to fo the MHP owner financing route, which would prove to be one of the best investments of my career. It was easier and more painless. Though there was a lower return, I didn’t have to do nearly as much work as I did before. I also received a substantial amount of principal profit, more so than the park actually made when I sold it, thanks to the owner’s note. Though it was a grind, this hooked me into the MHP world.
Contact The MHP Expert Today
Have more questions regarding the MHP space? Check out our services page to learn more about how we can help!