MHP vs Multi Family


#1

Hello Everybody,

If I may ask why you chose MHP over Multifamily? I would think there is a bigger price appreciation in MF?

Thanks,
Ben


#2

“You can’t hurt the dirt.” MHP is a low-hassle business. If everything goes well and all tenant-owned homes.

If you are counting on price appreciation, that is speculation. I expect most of us are investors for cash flow i.e. current value.

“Units” are relatively inexpensive, allowing you to spread the risk. There is more diversification (therefore less risk of variance) relative to the cost of purchase.


#3

Multi family and MHC values are both driven by rental income/cap rates. There should be no difference in appreciation. However investing should be about cash flow not speculating on appreciation.
Rent to income is far higher, therefor higher cash flow, with a MHC than a brick and mortar income property for many reasons not the least of which is lower expenses.


#4

Thank you for the answers. The question I was posing myself was over next 40 yrs what will appreciate more, park or an MF building in C class Metro area. They both cash flow. That is the only reason I have asked. But I guess there lots of different stories with different investors in both areas.