Real Deal REInvestor Network

As an investing strategy, mobile home parks are not known for their glamour (looks), but for their cash flow (substance!).  It's amazing how we can overcome our apprehension and hang-ups about  investing in a MHP when faced with a great investing opportunity.  Now, there are some beautiful mobile home communities; beautiful landscaping, paved roads, new homes that are well-kept.  But that's more the exception than the rule.  Recently I was speaking with someone I used to repair the HVAC at a rental property, and he was sharing a story about a friend of his who had the opportunity to buy a MHP, and asked Charlie if he would like to go in on it with him.  Charlie hesitated and then declined the offer, thinking he did not have several hundred thousand dollars to invest, and was not exactly thrilled at the prospect of owning 'trailers'.  The investor decided to go it alone and buy the park himself.  About 20+ mobile homes, not too many other details.  But he did call Charlie later to tell him that the seller was highly motivated, and he got the whole park for about $40,000.  At this point, Charlie- not knowing any of the numbers (OE, NOI, upside potential anyone?) was already kicking himself.  "If I'd have known that, I'd have written him a check for 20 grand on the spot!" were his exact words to me.   What changed his mind?  The price, of course.  That mobile home park looked at little shinier, a little brighter at that price!  And although you never know a deal until you really look at the details, I thought he was probably right in that he had made a mistake.  So what's the moral of the story?  Never mistake Substance by going for Looks;)  As an investor, the key is in the numbers.  There are a lot of incredible deals out there, and you have to keep your eyes and ears open to catch them.  Don't let your built-in biases hold you back.  You could miss the opportunities that can change your life.