Good afternoon MHU Friends,
its my first time posting here. I am trying to run the numbers on financing a deal on my first MHP.
It has approximately 20 lots with homes on it, and 5 lots that are not developed yet.
How can I put together an estimate of how much it will cost to develop these 5 lots , to present to my lenders as a value add opportunity?
Greatly appreciate your help!
I’d love to know this as well…if you get any bids would you mind sharing?
@shwepa83 We need a little more details on the park and the current infrastructure. Is is City Sewer, City water, Septic, packing plant etc.
Next question is the city or local government going to allow you to develop those other lots? What was the original park plotted for as far as lots?
I received two estimates recently. One for $18,000 per pad and one for $23,000 per pad. You definitely need to dig into the details, as there are differing levels of infrastructure and engineering included in each proposal.
Hi Keith,
These prices seem high. Are you talking about installing plumbin, electric post and a pad? Did you get any more information? I’m looking for the same.
These are pretty comprehensive numbers, so they include city permitting costs, water and sewer main tap-in fees, and all of that other fun stuff. It can really start to add up when you shoot for an all-in number. When you hear other operators quote $10k-$15k development per pad, they’re likely only referring to the hard construction costs.
Although we have expansion space at several locations, we have never considered expanding due to the cost and complexity. You will have to price installation of roads, concrete pads and/or runners, sewer lines, gas lines, electric lines, water lines. Also, you will have to pay permit and tap fees. In Denver for example, the tap fee is $8200 per home and in Pittsburgh it is $2798. You can price those by contacting contractors who specialize in each of those trades and having them quote your project. The cost could easily be $20,000 to $30,000.