Mobile Home Parks for Sale in Washington State
Mobile home parks are a smart investment for anyone looking to purchase commercial real estate. These opportunities offer the lowest cost per unit of any multifamily property. Plus, tenants are generally responsible for repairs and maintenance.
If you’re looking for mobile home parks for sale in Washington State the team at Teletare is here to assist you. We have a wealth of experience with these types of properties and can help you find the perfect investment that meets your requirements.
Mobile Home Park Classes:
Not all mobile home parks for sale in WA will be the same. There are a number of different classes of parks, so it’s best to do your research beforehand and find the type that will suit your needs best.
- Family Parks: These parks are geared toward families and often include communal play areas for kids.
- Budget Parks: As the name suggests, these parks concentrate on providing affordable housing. As a result, units will be very basic and the park likely won’t have many amenities.
- Luxury Parks: Mobile home parks don’t always have to be about affordability. Luxury mobile home parks offer newer units along with a number of additional features such as added security, increased privacy, and recreational facilities.
- Retirement Parks: Because of the affordability of mobile homes, they often appeal to seniors. Some parks are designed specifically with retirees in mind and often have a minimum age for those living in the park.
How to Evaluate Mobile Home Parks
There are a wide variety of mobile homes for sale in Washington State, and every park is unique. Make sure you thoroughly study a park before going through with the deal to ensure it fits with your business and meets all of your requirements.
Here are some tips to help you evaluate mobile home parks in King County:
- Profit & Loss Statement: The profit and loss (P&L) statement is one of the most important documents to review for any business. It summarizes all the revenue and operating expenses generated by the property. Review this information over the last three years to gauge the health of the business.
- Operating Expenses: Determine what the annual operating expenses of the property are. You’ll also want to inspect the current condition of the park to see if there are any repairs or upgrades that will need to be made in the future, as these can increase your future expenses.
- Determine the Net Operating Income: The net operating income will show you how much you can expect to earn from the property each year. It can be determined by subtracting the property’s operating expenses and vacancy from it’s schedule gross income.
- Determine the Capitalization Rate: The capitalization rate, or cap rate, is another important number that you’ll need to calculate, as it will show you your expected rate of return on your investment. It can be determined by dividing the net operating income by the value of the property.
- Rent: While most residents in a mobile home park own their home, you’ll be able to charge them lot rent for the plot of land their home sits on. Look at the current rents and see if they’re in line with the market rents (rents being charged by similar mobile home parks). If they’re low there may be an opportunity to raise them in order to increase revenues. You’ll also want to look at market trends in order to determine how much you’ll be able to increase the rent in the future.
- Vacancy: Are there any lots currently vacant? If there are a high number of vacancies you’ll need to put in additional work following the sale in order to get them filled.
- Future Resale and Development Opportunities: Based on the current market, will there be an opportunity to sell the property for a profit in the future? Can you develop the property further in order to charge more rent and increase its value?
Choosing the Right Location
While most mobile home parks will provide tenants with a lot of what they need, it’s still beneficial to own a park that’s located near essential services and activities.
Here are some things to consider when looking at park model homes for sale in Washington State:
- Schools: If your park is geared towards families you’ll want to be located near schools to make it more convenient for parents.
- Shopping: No matter what the demographics of your park are, being located near grocery stores and shopping centers will be a big plus.
- Transportation: Some people in your park may depend on public transportation, so being near bus routes will be beneficial.
- Recreation Areas: Having public parks, beaches, and trails nearby will be a great selling feature for potential tenants.
Find Mobile Homes for Sale Near Seattle WA
Are you looking for mobile home parks for sale in Washington State? Our team of experienced commercial real estate brokers can help you find the perfect property to invest in.