In this episode, Charlotte Dunford, a seasoned mobile home park investor and managing partner at Johns Creek Capital, takes center stage. Charlotte shares her fascinating journey, from being an immigrant to acquiring 28 mobile home parks. She sheds light on the unique aspects of mobile home park investing, offering valuable insights and strategies for success in this niche.
Charlotte delves into the specifics of her investment strategy, emphasizing the attractiveness of distressed or undervalued parks. She discusses implementing cosmetic upgrades, raising lot rents, and enhancing net operating income (NOI) to drive profitability. A crucial aspect she highlights is the distinction between park-owned homes and tenant-owned homes, stressing the importance of avoiding ownership of the homes to minimize liabilities.
Value-add opportunities in mobile home parks are explored, including sub-metering utilities, increasing occupancy through infill, and cultivating a high-quality tenant base. Charlotte underlines the significance of tenants with pride of ownership and strong moral values, fostering a positive community atmosphere.
Property management in mobile home parks is another point of discussion, where Charlotte outlines the differences from multifamily property management. She advocates for hands-on management and the establishment of clear rules and regulations to ensure a safe and harmonious environment.
Addressing the affordable housing crisis, Charlotte sheds light on the role mobile home parks play in providing affordable housing solutions. She emphasizes the scarcity of new parks being built, driving demand for existing parks and creating an opportunity for investors.
Charlotte also touches on her investor approach, opting for deal-by-deal offerings over a fund structure. She reveals their focus on distressed parks with solid infrastructure, offering a value-add potential for investors.
Reflecting on her experiences, Charlotte shares valuable advice, highlighting the importance of careful tenant selection and preserving cash for unforeseen circumstances.
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