After 15 years of owning and operating mobile home communities across three states, I’ve learned that success in this business comes down to seeing what others miss. While many investors chase the latest real estate trends, manufactured housing communities continue to provide steady returns with less competition – if you know what to look for.
Start with the Right Markets
The best opportunities aren’t always in the hottest markets. Look for:
- Secondary and tertiary markets with stable employment bases
- Areas with housing affordability challenges
- Communities within 45 minutes of major employment centers
- Markets with limited new housing construction
- Regions with aging housing stock but strong demand
I found my best performing property in a small manufacturing town that barely registered on most investors’ radars. The fundamentals were perfect: steady jobs, rising housing costs, and virtually no new affordable housing being built.
What Makes a Good Value-Add Opportunity
When evaluating properties, I look for these characteristics:
- Below-market lot rents with room for reasonable increases
- Municipal water/sewer or well-maintained private utilities
- Proper density and lot sizes for today’s larger homes
- Minimal deferred maintenance on infrastructure
- Strong rental demand in the surrounding area
- Public roads or well-built private roads
- Clean Phase I environmental history
The key is finding parks where simple operational improvements can drive significant value. My team recently turned around a 65-lot community simply by implementing professional management, upgrading the water system, and gradually bringing rents to market rates.
Red Flags to Watch For
Experience has taught me to walk away when I see:
- Private utilities with major deferred maintenance
- Environmental concerns or proximity to hazards
- Poor grading or drainage issues
- Lots too small for modern homes
- High percentage of pre-1976 homes
- Significant unauthorized occupants
- History of municipal citations
- Complicated master meter setups
One deal I passed on had “great numbers” but needed $500K in water system repairs. Another investor bought it and spent years dealing with infrastructure headaches. Sometimes the best deals are the ones you don’t do.
Due Diligence is Everything
Successful operators live and die by their due diligence. My process includes:
- Detailed utility bill analysis and infrastructure assessment
- Tenant background checks and payment history review
- Title search going back 40+ years
- Survey and environmental reports
- Local market rental analysis
- Detailed capital expense projections
- Multiple site visits at different times/days
- Meetings with local officials and utility providers
I spend more time on due diligence now than I did on my first few deals, and it’s paid off tremendously.
Building Your Team
Success requires strong partnerships with:
- Local property management companies
- Mobile home movers and dealers
- Maintenance contractors
- Municipal inspectors
- Title companies familiar with MH parks
- Lenders who understand the business
I still work with the same property manager who helped me with my first park 15 years ago. These relationships are invaluable.
Final Thoughts
This business rewards patient, detail-oriented operators who treat residents with respect while maintaining high standards. The best owners I know aren’t trying to get rich quick – they’re building sustainable communities that serve a critical need in the housing market.
Take your time finding the right first deal. A good purchase here can set you up for decades of stable returns and opportunities for expansion. A bad one can drain your resources and enthusiasm.
Remember: our residents trust us with their homes and communities. That’s a responsibility that goes beyond just the numbers. Build a business you can be proud of.
Happy hunting!