In the video above, Andrew Keel explains why drainage can become an important consideration when evaluating a mobile home park. While drainage may not be the first thing investors notice during a property visit, poor mobile home park drainage can potentially lead to larger infrastructure concerns over time.

Standing water, erosion, damaged roads, and ineffective stormwater systems may point to issues that deserve a closer look during due diligence. In some cases, addressing these concerns could also require additional capital after an acquisition.

However, not every puddle signals a major problem. Instead, investors may want to understand how water moves through a mobile home park, where it collects, and whether the existing drainage infrastructure appears capable of managing stormwater effectively.

Why Mobile Home Park Drainage Matters During Due Diligence

A mobile home park can contain several surfaces that affect how rainwater moves through the property, including roads, rooftops, driveways, and compacted ground.

The U.S. Environmental Protection Agency explains that impervious surfaces can reduce the amount of water that soaks into the ground while increasing surface runoff. Increased runoff may contribute to erosion, flooding, and other drainage concerns.

As a result, investors may want to look for signs such as standing water, erosion, low areas near homes or roads, clogged drainage infrastructure, and road deterioration that could be associated with water movement.

Keel Team also discusses poor drainage and standing water as potential warning signs in its guide to avoiding a money pit mobile home park investment.

What Can Cause Drainage Problems In A Mobile Home Park?

Drainage issues can develop for several reasons, and the cause may not always be obvious during a quick property walkthrough.

Grading And Low Areas

The slope and grading of a mobile home park can influence where stormwater travels.

If water repeatedly collects in low areas rather than moving toward an appropriate drainage point, investors may want to determine what is causing the issue and whether improvements could be necessary.

Roads And Other Impervious Surfaces

Roads, driveways, rooftops, and other hard surfaces can affect how water moves through a mobile home park.

According to the EPA, these surfaces can reduce infiltration and increase runoff. Therefore, drainage may become particularly important around areas where water cannot easily soak into the ground.

Drainage Infrastructure

A mobile home park may use ditches, culverts, storm drains, swales, or a combination of systems to manage stormwater.

The condition of this infrastructure can matter. For example, the EPA notes that vegetated swales can help transport runoff while also slowing water and encouraging infiltration.

When conditions raise concerns, investors may want a qualified professional to evaluate the drainage infrastructure more closely.

For investors looking to learn more about the asset class, Keel Team’s Passive Investor’s Guide to Mobile Home Park Investing provides additional educational information about mobile home park investing.

How Poor Mobile Home Park Drainage Could Affect Capital Expenditures

Drainage problems may eventually become capital expenditure issues.

Water can potentially contribute to erosion, road deterioration, and other infrastructure concerns. The extent of the problem, however, can vary significantly from one mobile home park to another.

A relatively simple drainage correction may look very different from a larger project involving grading, roads, culverts, or engineered stormwater improvements.

Therefore, investors may want to identify potential drainage concerns before finalizing their capital expenditure assumptions.

Keel Team’s Mobile Home Park Capital Expenditure Planning guide provides additional information about evaluating potential infrastructure expenses and planning for capital needs.

What Should Investors Look For On-Site?

One challenge with evaluating drainage is that conditions can change depending on the weather.

A mobile home park may look completely different during or immediately after heavy rain than it does during a dry period. Therefore, investors may want to examine roads, home sites, low areas, ditches, culverts, storm drains, and other visible drainage infrastructure during due diligence.

When significant concerns appear, investors may consider bringing in a civil engineer, drainage contractor, or another qualified professional who can evaluate the mobile home park more thoroughly.

The Bottom Line On Mobile Home Park Drainage

Poor drainage does not necessarily mean a mobile home park is a bad investment.

However, mobile home park drainage can potentially affect infrastructure, future capital expenditures, and the overall condition of a property. As a result, investors may want to pay attention to how stormwater moves through a mobile home park during due diligence.

Identifying potential drainage concerns before closing may give investors more information when estimating repairs, developing a capital expenditure budget, and evaluating the overall investment.

Disclaimer:

This article is for educational and informational purposes only. It was written with the help of AI and reviewed by the Keel Team. It is not investment, tax, or legal advice, and it is not an offer to sell or a solicitation of an offer to buy any security. Any such offer is made only through official offering documents to eligible investors. All investments carry risk, including the potential loss of principal. Consult your own advisors before investing.