Years ago, I bought a mobile home park in Dallas that came with something I never wanted to own: a tired old commercial building sitting near the entrance. At the time, it was leased short-term to a small laundry operator, the lease was about to expire, and the structure clearly needed work. During due diligence, it was obvious this building would demand attention, capital, and a learning curve that had nothing to do with running a strong mobile home park. That realization shaped a lesson I still teach today.
Focus Creates Better Outcomes
Strong operators take their properties personally. That mindset works best when your attention is not split. I cared deeply about the park itself. I did not care about becoming a small commercial landlord. For that building to succeed, it needed an owner who actually enjoyed that type of project.
Once it was listed for sale, the right buyer appeared quickly. A small investor who specialized in older commercial buildings saw opportunity where I saw distraction. He was excited about rehabbing, re-tenanting, and improving a single structure. That difference in focus created value for both of us.
Specialization Beats Sprawl
Most problems in real estate do not come from the main asset. They come from side pieces that pull time, energy, and capital away from the core business. In mobile home parks, ancillary assets often create friction with:
- Operations, because they introduce unfamiliar management issues
- Financing, since lenders typically value mobile home lots, not side businesses
- Capital planning, due to deferred maintenance unrelated to the park itself
Selling that Dallas building eliminated future repairs, reduced stress, and converted a low-rent situation into immediate liquidity.
The Physical Reality Matters
Not every asset can be separated. Subdivision only works when the property layout supports it. In this case, the building sat outside the park boundary, had its own road frontage, and independent utility connections. That made the split clean and defensible.
I have owned other structures buried deep inside park boundaries where subdivision was simply not possible, even when buyers were interested. Physical design always comes first.
Lender Approval Is Non-Negotiable
No subdivision moves forward without lender consent. A release price must make economic sense. If the lender wants more than the market value of the asset, the deal stops immediately.
In this situation, the release price allowed the sale proceeds to cover surveys, legal work, and still produce a net benefit. That alignment is critical and should be verified early.
Cities Are Often More Receptive Than Expected
Municipalities generally view a reduction in mobile home park zoning as a positive. Still, subdivisions require patience. Surveys, filings, and approvals take time. The process is rarely complicated, but it is rarely fast.
For investors, the real cost is not money. It is distraction. Knowing that upfront helps set realistic expectations.
Value Beyond the Sale Price
After the sale, the new owner renovated the building, improved the parking, and brought in a long-term restaurant tenant. The corner went from tired to active. Residents gained a nearby service. Appraisers saw a cleaner, more focused property. The park benefited indirectly through perception and valuation.
This is the part many investors overlook. Removing a weak or mismatched asset can improve the story of the entire property.
Final Thought
For mobile home park owners, the goal is not to own more pieces. It is to own the right ones. When a side asset distracts from operations, financing, or focus, separating and selling it can be the smarter move. In many cases, doing less leads to owning a better asset.