Manufactured housing communities and RV parks are operating businesses on land. The income is driven by lot rent, occupancy and how well the property is run, and the risks are often underground, in the water lines, sewer and paperwork. This guide walks through the due diligence that matters most.
Know what you are buying
A manufactured housing community (MHP) typically leases sites to residents who own their homes. Residents pay monthly lot rent, and because moving a home is expensive, turnover is usually low. An RV park or campground rents sites by the night, week, month or season. Income can be higher per site but is more seasonal and operationally intensive, closer to hospitality. RV resorts add amenities and higher rates; many properties are a mix of long-term and transient sites.
Be clear about which business you want to run. A long-term MHP and a destination campground can sit on similar land and look alike in photos, yet call for very different staffing, marketing, financing and risk tolerance.
Define your buy box
Before touring properties, write down your criteria: asset type, states or markets, site count, price range, minimum cap rate, occupancy, utility preferences and the terms you need, such as seller financing, assumable debt or a 1031 exchange timeline. A clear buy box saves time for you and for brokers, and helps you say no quickly.
On ParkMarket you can save your buy box so matching listings reach you, and serious buyers can apply for Founding Pro, where our team researches opportunities by hand against those criteria.
Verify the rent roll and income
The rent roll lists every site, who occupies it, the rent and the status. Treat it as a claim to verify, not a fact. Ask for:
- A current rent roll plus at least two to three years of operating statements.
- Bank statements or deposit records to tie collections to the rent roll.
- Tax returns, which often tell a more conservative story than marketing materials.
- Delinquency and eviction history, and any rent concessions or side agreements.
- Leases or site rental agreements, rules and regulations, and any rent-control filings.
Separate lot rent from other income such as utility reimbursements, home rentals, laundry or nightly RV fees. Underwrite each stream on its own, since lenders and future buyers may value them differently.
Park-owned homes
Park-owned homes (POH) are homes the community itself owns and rents or sells. They can fill vacant sites, but they turn the owner into a landlord for the structure as well as the land: repairs, turnover, insurance and titling all become your problem. Some lenders limit or discount POH income.
Inventory every park-owned home: year, condition, title status, rent, and whether it is rented, for sale or vacant. Many owners plan to sell homes to residents over time, often with financing, to shift toward a resident-owned community. Model that plan explicitly rather than assuming it will happen.
Utilities and infrastructure
Infrastructure is where surprises are most expensive. Find out whether water and sewer are municipal or private (wells, septic systems, or a small on-site treatment plant). Private systems are common and can work well, but they need specialist inspections, testing and sometimes permits or regulator reporting.
- Age and material of water and sewer lines; any history of leaks or backups.
- Who pays for water, sewer, electricity and trash, and whether costs are billed back to residents.
- Electrical capacity per site, which matters for newer homes and larger RVs.
- Road condition, drainage and any flood exposure.
A sewer camera inspection and a review of utility bills against occupancy can reveal leaks and deferred maintenance long before they show up in an operating statement.
Lot rent and occupancy
Compare the property’s lot rent to nearby communities of similar quality. Rents below market can be an opportunity, but raise them carefully: check local rent regulations, notice requirements and resident affordability, and expect scrutiny from residents and sometimes local officials.
Low occupancy can mean value-add upside, or a problem. Ask why sites are vacant. Can new homes physically fit and be permitted? Is there demand in the area? What will it cost, and how long will it take, to bring homes in? Vacant sites only become income when a home is set, connected and occupied.
Environmental, zoning and legal
- Environmental: a Phase I Environmental Site Assessment is standard for most commercial loans and can flag issues such as old fuel tanks or prior industrial use.
- Zoning: confirm the current use is permitted and whether it is legally nonconforming. If a nonconforming park loses use for a period, it may not be allowed to re-establish it.
- Licensing: many states license or inspect mobile home parks and campgrounds. Ask for current permits and inspection reports.
- Title and survey: review easements, encroachments and the boundaries of every site.
Financing and closing
Financing options depend on size, quality and your experience. Larger, well-occupied communities may qualify for agency or CMBS debt; smaller or value-add deals often use local banks, SBA programs where eligible, or seller financing. Lenders will look closely at occupancy, POH share, utilities and your track record. Our financing guide explains the common options and terms.
Build time into the purchase agreement for inspections, financing and title work, and plan the handoff: resident communication, utility accounts, insurance, staff and property management.
Ready to test a specific property? Try the Deal Analyzer for a quick screen, then the Investment Calculator to model returns with financing.
Educational content only. This is general information, not legal, tax, lending or investment advice. Every property and buyer is different; consult qualified professionals before making decisions.