Do you think a mobile home park is a good investment? The land only…the renters own their own homes.?

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There’s one for sale at $ 189,500. They have 10 spaces rented for $ 125.00 per month each..for $ 1,250 per month coming in. I have $ 100,000 in a CD that matures in May – it is at 3% now and if I put it back in a CD I’d get less interest so I’m looking to do something else.

If I could get it for $ 150,000 then I’d finance $ 50,000. What responsibilities would be involved? I’m sure you’d have to have insurance on the park in case someone got hurt, but other than that are there responsibilities? Since everyone owns their own home its not like I’d have to do maintenance. Would I be the one they’d call if someone got loud? Or sold drugs? If you evict someone for non- payment, it seems like it would be really hard to do since they’d have to move their whole home…anyone have experience with this? If you could do it again, would you? Or does anyone have any comments?

3 Comments
  1. Reply
    kemperk
    July 21, 2011 at 1:30 am

    you are offered a poor return when you can get way better in dif
    active investment; try starting a small venture capital fund.
    I can guide you free.

    your risk can be zero and your return 15x what the park land will bring

  2. Reply
    Waleed
    July 21, 2011 at 1:44 am

    Avoid this. Esp with the other stuff there is in the foreclosures market these days.

    You’re talking about maybe 15K revenue per year (minus managment upkeep taxes insurance…. who knows what’s involved in running a trailer park) on an investment of $ 190K. That is terrible yield to get for such a high risk of you’re principal, and at a very large amount of headaches.It is also good practice to avoid slums and unsafe areas. Furthermore it is a totally illiquid asset, you may not get your principal back since the principal is at risk, and unlike the CD you cannot get your money back when you need it by just paying a simple small fee.

    There’s a reason yield on cash is going to zero. Safety and liquidity. You may earn nothing in interest over the medium term but at least, if FDIC insured, you keep your money (though we are starting to see that money eroded in purchasing power, a trend that will likely pick up over the years) and you keep it liquid, so that you can snatch up distress sales, of which there will be more and more in the months if not years to come. I got this guy for a years worth of rentals on another property (i.e. next to nothing) recently: http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=380102671512#ebayphotohosting
    and will get to work soon this year to fixing it (may be expensive) for a rental.

    In summary, forget about a year or two of piddly interest and stick mostly in cash, or if you see value scream out at you. Start dollar cost averaging into compelling stocks on market dips (below dow 7000). Put 5% to 10% of you cash in physical silver for now. Maybe a little, 3% to 5%, of DBA to hedge your food costs for a year. IMO we should know more this fall about the whether our economy will collapse or recover; things could go either way from here it really isn’t clear.

    Just avoid the silly stuff, and the above certainly seems just like a greater fool sale, not a distress sale.

  3. Reply
    Billy Cunningham
    July 21, 2011 at 2:28 am

    you can either make a crapload of money or you could have the biggest headache ever.

    189,000 for a mobile home park seems really low.

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