Fully occupied mobile home parks can generate thousands in income.
A mobile home park can offer an owner significant income potential with little upkeep involved. Many entrepreneurs make the investment in an existing mobile home park to provide ongoing residual income or to build a retirement nest-egg. If you have access to a piece of property that might offer the space to fit multiple mobile homes, you might consider the possibility of building your own mobile home park. You can provide home sites for new and used single- or double-wide manufactured homes, or you can provide temporary and long-term connection pads to power mobile RV homes.
Instructions
1. A suitable location is important to a mobile home park.
Find a piece of property for your mobile home park, if you do not already own land. Look for a large property that offers several acres so you have room for streets, individual lots, common spaces and a mobile home park office if desired. Consider the location of the land in relation to your business. If you plan to cater to RV mobile homes for vacationers and retirees, you may want to choose an area close to attractions or activities such as hunting and camping. A mobile home park for residents of manufactured homes should be close to town for commuters.
2. Mobile home parks may be considered commercial property.
Research the zoning of the property you own or plan to purchase for a mobile home park. Make sure the property can be subdivided for multiple units, and verify if you need special permission to use the land as a commercial investment. Inquire at your town council or city planning and development department about the legalities involved in establishing a mobile home park. Certain areas may not allow a mobile home park due to zoning restrictions in rural or residential areas.
3. Submit an application to change the zoning for your property, if necessary. Register as a business with your city or state, and obtain a tax ID for your business from the IRS. Apply for a business license and all the necessary permits from the local municipality where the land is located. Consult with a business lawyer if you need assistance in determining what permits and licenses are required for construction and operation of your mobile home park.
4. Plan spaces for a tennis court, park or playground for residents.
Consult with a contractor or architect who specializes in designing and building mobile home parks. Determine the placement of each mobile home lot, the streets, driveways and common areas, such as a playground or pool area and shared laundry if applicable. Ask for an estimate on the building costs for the park and the installation of utilities such as water, electric and sewer.
5. Pay off financing quickly to reduce interest costs.
Arrange financing for the construction, if needed. There are some banks willing to make loans for mobile home parks, but you may need to draw money from your own savings for a down payment or if you are denied a loan. Install the utility connections for one or two mobile home units if you are able to clear the land yourself. As you collect rent and start to develop an income, invest the money in further expansion efforts.
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