Multi Family or Mobile Home Park

[myHouse]

I would like to hear the pros and cons

[jhutson]

MHP vs Multi Family

“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.

The cap rate spread between the assets is beginning to close, but the link above otherwise gives you the high points.

[CharlesD]

Mobile home parks and apartments have many of the same advantages but parks add a few more:

• Revenue is more predictable and consistent on a lot where the resident owns his or her own home
• It’s a form of unsubsidized affordable housing (possibly the only form)
• Rents have an exceptionally strong narrative to outpace inflation over the next 10 years. Whereas the apartment industry generally does not (according to data provided by Green Street)

To name a few.

[TN]

Mobile home parks are a form of multifamily. I assume you mean apartments vs MHPs, the most compelling to me are:

1. Lower turnover (13 year average TOH stay for MHPs vs 2 for apartments)
2. Lower expenses (no repair & maintenance of homes)
3. No new competition (new MHPs are essentially illegal to build), vs new apartments going up every day
4. Higher cap rates = higher returns than apartments

I own both MHPs & apartments, and I greatly prefer the former.