Hello, I’m looking at a park that has about 30% occupancy (all TOH). There’s a military research facility about a 15 minute drive away, and after speaking to a couple people there and hearing about employees’ housing problems, it sounds like there could be an opportunity to work with them with rentals. TOH are my clear preference, but if it could work, I’d be open to doing rentals for this. My question is where I’d need to set rent for it to make sense (and then I need to figure out if the area would support this)
My idea would be to use the CASH program to bring in new homes. By my calculations it looks like the lot rent plus the payment on the home would be about $700/month. I’m thinking about it as the lot rent being my “profit” on the rental, and want to charge a rent that covers the lot rent, monthly payment on the home, plus an average expense amount over the lifetime of the home, plus a bit more to have a cushion. In that case, how much above that $700/month in lot rent plus home payment would I need to set rent so that it all nets out and I’m left with the lot rent? Do other people think about it this way?