Welcome to episode 13 of the Mobile Home Park Investors podcast, hosted by Jefferson Lilly and Brad Johnson, with the Park Street Partners. Today, Jefferson and Brad will discuss Capital Expenditures (CAPEX), which are generally larger ticket items that you will be paying for with your mobile home park property, at some point or another. Of course, if you do your due diligence up front, you might not need some of these, at least not in the near-term. So today, Jefferson and Brad will talk about some of the large ticket items they have had to spend relatively larger dollars for, such as roads and utility lines.
Key Takeaways:
[1:26] These large ticket CAPEX items may sound scary, but here is the bright side!
[3:19] Capital expenditures for repair & maintenance on buildings vs. land.
[4:57] The biggest large ticket/one-time, non-recurring expenses for mobile home parks are water & sewer pipes.
[8:47] New technologies can reduce repair & maintenance costs and help keep your capital expenses lower.
[9:52] Roads are probably the 2nd biggest capital expense that you can have.
[15:37] Note: we have covered CAPEXs on roads & utility lines, assuming your park is on the public water & sewer system.
[16:40] Another potentially large capital expenditure item: Water meters.
[19:39] American Lead Detection (ALD) is technically not a capital expense but it can lead to some capital expense work.
[23:28] Improvements you can make to the signage of the park that are not expensive from a capital stand point.
[24:46] Info. on tax treatments for all of these capital expenditures.
[25:27] Rough rule of thumb on how much you should budget for CAPEXs.
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