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baldona
Auburn Fan
Florida
Member since Feb 2016
11389 posts

re: Any Trailer Park owners out there?
quote:

if you’re going through a broker all businesses seem like they want to sell at 8% cap rate


Where are these at? I saw a Hardees building for sale for 4.15% the other day. Its a great location as there is no other fast food around there and likely not much competition in the future due to the area not wanting fast food there.

BI haven't been looking but I don't think there's much low risk 8% out there right now.


profboo
New Orleans Saints Fan
LA
Member since Sep 2007
68 posts

re: Any Trailer Park owners out there?
I started with just a rental or 2 & grew from there. The 1st one is always the hardest because often times people have a preconceived notion that parks are slums & full of drugs. I can tell you they’re not always like that. Just have to put your name out there. You could start with buying a MH already in a park & renting it out (if the park owner allows).

A lot of park owners are elderly & looking to retire. Wouldn’t hurt to make some phone calls or drop in for visit. Spread the word through other investors too. Some investors that specialize in SFH’s May hear of a park & pass on it bc they don’t like MH’s. Also check with realtors.

If you do find one the next step is trying to value it. There are many ways to value a park which can be very intricate. This type of investment isnt like most. Banks even have a hard time placing values on parks especially if they have a bunch of park owned homes (MH’s are easy to depreciate.....another conversation when you start looking at filing taxes) Don’t be alarmed if the asking price is double or more of your valuation.


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Rust Cohle
Baton rouge
Member since Mar 2014
1187 posts

re: Any Trailer Park owners out there?
quote:

Where are these at?


Burger place in Baton Rouge 30% cap

I’m really a novice in commercial real estate and business evaluation, but in general this is what I see legitimate businesses going for. I guess it’s hard to tell from a listing what you are getting. I have seen a few gas station convenience stores on there selling for 2x net. I would think that is the most Seedy gas station there is in town.

I guess the 8-10 number is more what I see at Mobile home park store.com

I have spent couple hours looking into shopify stores for sale and they have really amazing metric charts that show you their income overtime. The data cannot be altered by the owner, so you can just glance at it and know if it seems fishy. Like if their income tripled in the last month before listing it, you can just move onto the next business.


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Kaybaby82
Member since Jun 2019
625 posts

re: Any Trailer Park owners out there?
I live in a single wide, does that count?


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