Closing in on a park

[Bill W.]

I just wanted to update all on my search for a park. I have located a potential deal and am closing in. Price seems workable to me. Seller's motivation seems good. Once I get things on paper an lock it up I'll post details and of course lots of questions. I will gladly take a detailed trip through all the ups and downs of turning this park around and enjoying the final payoff. I should have it on paper within a few more days.

[Jeffery (LCLA)]

I'm looking forward to your posts.

[SlumLordMike]

Me too. I want a MH park too; I just need to find one close enough to my price and operating range. Good luck and go get'm!

[Debbie]

Mike,

You're supposed to say "Me three" --- that way I can safely say "Me Four!" :SM083:

[Bill W.]

Quick update.
It looks like all electrics in the park are only 50 amp. Bad!
Any ideas of cost to update? I've heard around $600-1000 per unit. Does this figure change if utility lines are above ground or underground? I should have more info soon.

[Jeffery (LCLA)]

Quick update.
It looks like all electrics in the park are only 50 amp. Bad!
Any ideas of cost to update? I've heard around $600-1000 per unit. Does this figure change if utility lines are above ground or underground? I should have more info soon.

With 50 amp service, it seems like it may have been setup as an RV park. As far as $600 - $1000 per unit to upgrade, that's about right. Could run more if the utility company doesn't do any of the work. If the electric service is underground, that could pose a problem because the conduit would be too small for 200 amp service. Good thing, though, is that you could upgrade one unit at a time.

[SlumLordMike]

I've never upgraded service on a MH, but I have done it twice on SFH's. I hope the below info helps.

Both times I have done it, I had a good friend with electrical skills right in front of me. The outside riser (mast), hood, box, and wire were purchased at Home Depot/Lowes and they totaled around $200. The inside 200amp and the other 125amp breaker box with most breakers included ran about $75-$90. Copper is high these days, so it may run a bit more than I paid. Finally, there is the permit cost which will be specific for your area....I paid $15.

I ran all new wire in both my places, but you don't have to. That part is labor intensive and time consuming....and copper is HIGH now. Good luck.

[Jeffery (LCLA)]

I though he was talking about the outside service. If it's the MH's I'd leave 'em alone.

[Bill W.]

Yes, I was talking about the outside service. I'll be checking soon to see exactly what's up and if the incoming is overhead or underground. I shall report back. Now let's hope the water pipes aren't old galvanized pipes and the sewers aren't old half collapsed pipes. These older parks seem to be mostly needing major infrastructure improvements.
That gives me an idea in the "find a need and fill it" catagory. Maybe what I should do is to get a good trencher and backhoe and get some experienced people that know what to do and then specifically look for parks that have these problems. Negotiate a discount based on full price replacement of the utilities and then bring in the crew. If I get parks that are already half empty, there will be less disruption of the tenants (what tenants) and I can get the repairs done wholesale. This might give a nice upside to the value of the park with all the new infrastructure and actually make a little side business, so to speak, just doing this work. I've been seeing a lot of parks that do have major infrastructure problems and most of the investors and guru's seem to say just stay away from them. Maybe, if a price could be negotiated based on the needed work, a few more good deals might become available.
Naturally, every park would have it's own set of special circumstances, but I wonder what average prices to do this work might be?eems like it would be higher in the north due to deeper trenching needed due to the freeze line depth and in areas with rocky soil, but I think I'll talk to some contractors who do this and get a range of prices.
Anyone with ideas or experience out there with cost ranges?

[Jim Johnson]

Quick update.
It looks like all electrics in the park are only 50 amp. Bad!
Any ideas of cost to update? I've heard around $600-1000 per unit. Does this figure change if utility lines are above ground or underground? I should have more info soon.
The new homes in my area use at least 100 amps, larger double wides use more. First you need to find out what is in the feeders, if it only supports 50 amps to each pedestal, you have your work cut out for you. That is a whole new service for the entire park. If your just changing each riser... easy fix.
Does the local code require a certain number of amps for each new home... you best find that out also... local and county.

Keep us posted...

[Bill W.]

I'll be checking with the local and county building and zoning today regarding the requirements. Will keep all posted.

[Bill W.]

Well, I found out. It's overhead wires, then down the poles to the riser for the trailer. EVERY one has only a 50 AMP riser. Also, lots are only 35 feet wide. Still a little more to check, but I'm leaning towards passing on this one. Anybody else interested?

[Aldo]

My personal opinion is that you've spent more time on this deal than it deserves. But, that's me.

[TommyOH]

Bill, that side business sounds like it could be quite profitable. I had a wise old man tell me once on a golf course "you need to work on your business, not in your business". I was just mentioning this because if you decide to persue that idea, you should seriously consider who will run it and do the work.
I know that doesn't have much to do with the original question, just throwin it out to your third post.

[Bill W.]

Will do. Sorry I've been out of the loop for a while. Had some problems that I had to deal with here.

[Bill W.]

Good point Tom. I've heard that quote from the E-Myth guy too. There's actually no way I could do the work. I'm not qualified to dom that type work, nor that interesdted in doing it. I'd have to hire some people and set it up-all in all, a large job which I think would be better handeled by a partner who had some experience in this type work.