Mobile Home Lot Investment Seattle WA

In a downsized economy where only service industry jobs seem to be booming, the trend is away from upscale properties while demand is growing in the rental sector. Meanwhile, the window of opportunity is narrowing to take advantage of a market that has been both maligned and neglected – mobile home parks.

Abie Label & Assoc Inc
(206) 382-8388
315 Maynard Ave S
Seattle, WA

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Bachtel Property Management
(206) 340-9301
1202 E Pine St Ste 101
Seattle, WA

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John L. Scott Property Management
(206) 621-9840
1225 S Weller St # 400
Seattle, WA
Services
Real estate counseling, Contract negotiation, Buyer representation, First-time home buyer counseling, Seller representation, Staging services, Property touring services

Impact Property Mgmt Svc
(206) 615-3467
120 6th Ave N
Seattle, WA

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Russo Properties
(206) 282-7619
20 Republican St
Seattle, WA

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Seattle Property Management
(206) 408-1520
1001 4th Ave.
Seattle, WA
 
Cascade Pacific Real Estate
(206) 448-7757
2505 3rd Ave Ste 150
Seattle, WA

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Warren Ave Properties Llc
(206) 283-9370
115 Warren Ave N
Seattle, WA

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R K Investments
(206) 284-9991
1319 Dexter Ave N Ste 140
Seattle, WA

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R P Management
(206) 282-6939
600 Queen Anne Ave N
Seattle, WA

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Mobile Home Lot Investment

Mobile home parks are a good investment in a downsized economy, with tax depreciation advantages and particular potential to turn around mom and pop operations. Learn how to apply simple formulas for finding the best deal, and explore financing through sellers or small banks, from someone with years of experience like Dave Reynolds. See the following article from JasonHartman.com for more on this.

mobile home park investment
In a downsized economy where only service industry jobs seem to be booming, the trend is away from upscale properties while demand is growing in the rental sector. Meanwhile, the window of opportunity is narrowing to take advantage of a market that has been both maligned and neglected – mobile home parks. In episode #168 of The Creating Wealth Show guest Dave Reynolds shares his expertise on the subject. Reynolds was born into the business, but he wasn’t infatuated with it until he viewed his dad’s profitable park management with the perspective of a recent accounting graduate. His own entry into park ownership came through a credit card cash advance to finance a down-payment. That inauspicious start launched a career in mobile home park acquisition and management that has spanned a dozen years and more states.

Mobile Home Park Value-Adding Strategy


Reynolds prefers dealing in land, renting lots rather than homes. He calls Lonnie deals – investing in park mobile homes rather than lots – “the worst of both worlds” since the investor is liable for lot rent regardless of occupancy. His strategy is transitioning park-owned home arrangements to space only deals. Furthermore, mobile home parks benefit from the IRS 15 year schedule of depreciation, while the ratio of improvement value – 70% land improvement/30% land – is comparable to other real estate sectors. Improvements for mobile home parks include infrastructure such as roads and utilities.

Formulas For Assessing Mobile Home Park Deals


In order to gauge what he might spend on a park deal, Reynolds uses a basic formula with one variable depending on which party is responsible for utilities. If utilities are paid by the renters: Number of lots multiplied by Average monthly lot rent multiplied by 70. If utilities are paid by the park, multiply instead by a factor of 60. Although vacant lots represent potential income, they should be assigned a lower value when buying. The metric that he applies when pricing occupied lots is based on the space rental. He will spend ~$5000 for a lot that rents at $100/mo.; double that if the lot rent is double. Reynolds prefers a price point of $5-15,000 per lot, subtracting value if vacant.

Best Practices of Mobile Home Park Management


Reynolds utilizes both off-site and on-site management, the latter serving as his “eyes and ears at the park.” Reimbursed with free rent and perhaps supplemental fees, on-site managers handle day-to-day operations, maintenance, and tenant...

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