In mobile home park investing, the most costly mistakes often come from skipped steps. Good due diligence isn’t just a checklist—it’s your best protection from bad outcomes. Here’s a breakdown of what to focus on when evaluating a property.
Primary Areas to Review
- Zoning and Legal Status
Before anything else, confirm the property’s zoning with the city or county. You’ll want documentation that spells out the number of approved lots and whether the park is legally conforming, grandfathered, or non-compliant. Buying a park with unclear or illegal zoning can lead to major legal problems or even forced closure. - Infrastructure and Utilities
Inspect all infrastructure on site. This includes:- Water (public or well)
- Sewer (public, septic, or treatment plant)
- Electrical and gas systems (individual or master-metered)
- Roads (paved or dirt)
- Lot conditions
- Lot Density and Layout
Parks ideally sit around 7 lots per acre, though many exceed that. If density hits 20 lots per acre or more, you could run into fire code violations or find that the lots are too small for standard homes. Know what you’re working with before you commit. - Financial Records and Projections
Don’t rely on a seller’s word. Verify financials by reviewing:- Rent rolls
- Utility bills
- Tax returns
- Profit and loss statements
- Occupancy trends
- Physical Occupancy vs. Paper Claims
Just because a tenant shows up on the rent roll doesn’t mean they’re actually living in the home—or paying. Walk the park and confirm which homes are occupied. Watch for boarded-up windows, empty driveways, and units without utilities connected. - Environmental Risk
Always order a Phase I Environmental Site Assessment. These reports uncover potential pollution or soil contamination, which can cost hundreds of thousands—or even millions—to fix. This step is not optional. - Survey and Title Verification
Work with a reputable title company to ensure:- You’re buying the full property with no missing sections
- There are no encroachments (like homes crossing lot lines)
- The land is not in a restricted flood zone
- Deferred Maintenance and Management Gaps
Take inventory of visible wear and tear: cracked roads, leaking water lines, failing sewer systems, or unkept common areas. Repairs cost money—make sure to factor them into your budget. Also, assess the current management setup. If operations are loose or inconsistent, you’ll be stepping into a cleanup job from day one.
Why This Matters in 2025
Mobile home parks remain attractive for investors looking for predictable income and demand stability. However, rising competition has pushed up prices and reduced cap rates. That means there's less room for error—especially if you’re buying based on assumptions rather than facts.
Final Thoughts
Benjamin Franklin said, “Diligence is the mother of good luck.” That still rings true today. Solid due diligence doesn’t guarantee success, but it puts the odds in your favor. If you're looking to build a long-term investment that performs year after year, start by taking your time—and asking the hard questions upfront.