Any Trailer Park owners out there?

If managed right they can be great. I always heard you want to rent the lots and not the trailers. Also, only buy with city water, city sewer. I've been looking at them, but the good ones are expensive.

They have some cheaper ones with value add opportunities if you are willing to go that route.

Just a suggestion, but think about buying a commercial building and leasing office space. At the advice of my CPA, I bought a 3 unit building 4 years ago to help with taxes and have some passive income. I found a very well maintained, attractive building and have had very little expense other than taxes and insurance which are about $12,000 per year and it generates just under $10k per month. I’m no real estate tycoon by any means like some of the guys on this board but for the little time I spend fooling with it, I would definitely think about buying more. Easy money at this point. Building is paid for so I feel like I could get out today and would have made a nice profit.

Meant to add my tenants are all professionals, (attorney, insurance and distribution business). Never late on rent and keep their units clean and let me know of any issues that could turn into something serious. Just don’t know if I would want to have to collect and deal with that in a trailer park environment.

Yes I own 2 of them. Both have their ups & downs. Cash flow is great. Have to make sure you buy right

Do you own the trailers or just supply lots and utilities? Can’t imagine owning the trailers as well but maybe I’m wrong.

That is a good point, if you’re going through a broker all businesses seem like they want to sell at 8% cap rate, so why mess with 20 trailer park tenants when you can mess with three business professionals. But if you can find an off market deal or somehow develop one yourself, and really create value then they can be profitable. There are really no parks being made in the country except for a few, one here in Baton Rouge.

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You’d have to be very firm and have some moral flexibility, like a damn communist dictator. Your tenants will need to be led with a whipping stick and have zero give. I’m talking about putting people on the street as you were already their cheapest and last resort until they can save up again.

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The is the unfortunate truth. Renters in general you can't give them an inch. My parents own some rent houses and you cannot trust a word they say. They've had to learn some lessons the really hard way.

Many tenants talk a big game but they're good talkers in the end. Nothing more. You don't like a term you're living under, you're free to leave.

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be on the look out for bubbles Ricky and julian. they're hanging around your park smoking dope and drinking somewhere.

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It's actually the Cyrus types that bring the most trouble from what I've seen.

As far as what to look for in regards to parks it varies & all depends on your goals. I don’t mind rentals now but will eventually want all tenant owned homes. In tangipahoa parish it’s extremely hard to start a new park. They put different regulations in to prevent them. Therefore, if you want a park, it’s cheaper to buy one already setup. Park owners know the restrictions so they often over price them. They’re still good deals out there though.

As far as pitfalls.....you’re going to make mistakes. Just learn from someone & don’t be scared to ask questions.

The best place to find good deals is word of mouth. I’ve passed on several parks for various reasons. Sometimes they’re too overpriced, sometimes they’re too run down, sometimes they’re too small or too far away.