Park Underwriting Protocol
Mobile Home Park Due Diligence & Infrastructure Cheatsheet
💧 Water & Sewer Utility Hierarchy
- ✅ Tier 1 (Best): City Water & City Sewer directly metered to each tenant by the municipality.
- ✅ Tier 2 (Value-Add): Master Meter City Water — Install Metron-Farnier submeters to recapture costs.
- ⚠️ Tier 3 (High Risk): Private Well & Septic / Packaging Plant — Requires EPA testing & licensed operator.
⚡ Electrical Pedestals & Amperage
- ✅ 100A to 200A Individual Pedestals: Required to support modern all-electric manufactured homes with heat pumps.
- 🚫 Legacy 30A/50A Fused Panels: Cannot handle air conditioners; budget $1,500-$2,500/pad upgrade.
- ✅ Direct Electric Metering: Confirm local utility owns transformers and drops.
🏛️ Zoning & Legal Non-Conforming Status
- ✅ Zoning Verification Letter (ZVL): Confirm park has grandfathered non-conforming legal status.
- ✅ Abandonment Clause: Verify whether vacant pads lose their right to be re-occupied after 6-12 months.
- ✅ Setback Compliance: Minimum 10ft between homes and 5ft to lot boundaries.
📋 Rent Roll & Title Due Diligence
- 💎 TOH vs POH Titles: Ensure clear state DMV / HUD title certificates on all park-owned homes.
- 💎 Tenant Collections: Request 24 months of bank deposits to verify actual rent collections.
- 💎 Road Conditions: Inspect asphalt vs gravel base and stormwater drainage ditches.