I’m thirty-six years old and bought my first mobile home park two years ago. It is eight acres with thirteen mobile homes and a mini-storage. I told the owner I would give her the full asking price of $200,000. I knew that would get her interest. After checking with the local banks, finding out their terms and the fact that they didn’t want to loan that much money for a small park, I asked her if she would consider owner financing.
My wife and I came up with $10,000 for the down payment. The owner said she would hold the note for 6% interest. (The bank wanted 9%.) Even by giving her the asking price at 6% interest, I was still saving $62,000 over a fifteen-year payment plan. The park came with two mobile homes and a rent-to-own with about $2,500 left on the note. At the time the park was grossing about $2,700.
Two people moved (homes included, as per one of my new rules for the park), and I evicted two more (troublemakers). I have bought three mobile homes and set them up in the park at a cost of about $9,500 each. It’s amazing how cheap people will sell a mobile home, especially when it has to be moved. I bought one in the park from a divorcing couple and one from one of the tenants I evicted.
I now have seven park-owned mobile homes and six lot rents, plus the mini-storage. It now brings in $4,650 per month. I’m paying on five mobile homes notes (low monthly payments) and the monthly note on the park. If nothing breaks (yeah, right), I’m clearing about $2,200 per month. When the notes are paid the monthly income will be…well let’s just say, “Good Enough!”