How To Perform Due Diligence On A Market

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3. 1. 1. D Du ue e D Di ilig ligence I Inv nvesto estors rs ence f for or Mo Mob bi ile le H Hom ome e Pa Park rk During the process of evaluating potential mobile home park acquisitions, and vetting properties under contract investors ought to be familiar with the following items.

4.  Property inspections  Environmental inspections  Title and lien searches  Comparable sales  Holding costs  Operating costs  Actual rents  Leases and tenant status

5. 2 2. . E Eva valu luat atin ing g M Mo ob bile O Op pp port ortu unitie nities s ile H Ho ome me P Par ark k A Ac cqu quis isition ition  P Pe er r D Doo parks is lower per door cost. That is the per unit cost in a park. oor r C Co os st t- - One of the main attractions to mobile home  P Pr ri ic ce e t to o R Re en nt t R Ra at tio io- - Price to rent ratio calculates the rental income against the purchase price. Find this by dividing the purchase price by annual rents. peti ition tion- - How much local competition is there between mobile home parks? Are there many parks or only one or two to pick from? How are they different? If there is a waterfront park or luxury park community and a low income park in a dry inferior area, or an over 55 aged community, they are probably not competing for the same tenants.  L Lo oca cal l C Co om mpet

6.  S Su up pp ply strong is the demand for this type of rental? What are the forecasts and potential threats or bumps to demand and supply? trols- - Are there rent controls in place? Are there rent controls impacting the ability to raise rents on this property? Are there rent control regulations keeping the rents down on other local properties? Are there limitations in existing leases which could prevent rents from being raised up to market levels? pare M Mo obil bile e H Hom ome e P Pa ark rk U Un ni it ts s t to o t th he e C Co omp do the units in this mobile home park compare to similar local rental units? For example; local 2 bedroom, 2 bath apartments? How do the rents compare? Facilities and amenities? Qualifications to lease? Demand and occupancy rates? ly a an nd d D De em ma an nd d- - How are local occupancy rates? How  R Re en nt t C Co on ntrols  C Co om mpare mpeti etiti tion on- - How

7.  L Lo ocal for? How do this compare to your per unit cost of acquiring a mobile home park? How does the cost of putting and maintaining a mobile home on your lot compare to buying a similar sized home in the area? cation ion- - How great is this mobile home park located? How well is it located in relation to the services, stores, and amenities your demographic of tenants needs and wants? Lower end mobile home parks may benefit from being within walking distance to grocery stores and fast food. Vacation and seasonal parks may benefit from being closer to attractions such as the beach and parks. cal H Hom ome e P Pr ri ic ce es s- - How much are local homes being sold  L Lo ocat

8. Fo For r m mor ore e i inf nformation, ormation, vi visi sit: t: mo mobi bilehomeinve lehomeinvestors.c stors.com om