60/30 Rule

I’m sure this has been asked before and I know its in the books, courses, and teleseminars being sold, but I am hoping somebody can give me the reader’s digest version of the “60/30 rule”.

I currently own a park and am looking at purchasing another. I typically do a reasonable job of evaluating parks but I’d like to learn how this “rule” works. From what I’ve gathered reading through posts it is used on parks with vacant lots. The park I am looking at has some vacant lots and I am anxious to learn something new.

Thanks in advance for any help.


Type in 60/30 rule in the archives search on this forum and the creonline forum and you will find your answer.

60/30 does not apply to small parks. Even so, now we say don’t even include the 30 because it is YOUR CASH that is going to have to make that empty lot perform.


It is difficult to wrap my mind around the fact that you have suggested no value should be given to a lot ready to rent.

Bill, that is a tough proposition. I think the answer is somewhere in the vacancy rate; I

Shawn , I think you have hit the nail on the noggin.

When I went to the MHU event in 11/2005 I remember being told by Steve Case that the 60/30 rule was meant to be a Rule Of Thumb not a rule cast in stone. Come on we all know Real Estate is a regional game and very much site specific. I have said it before - one shoe doesnt fit all. I personally used the 60/30 Rule in helping me get started in my analysis of MHCs. Did I use the ultimate number that the 60/30 rule calculated. NO. I refined the ultimate purchase price of the property I put under contract in accordance to the local market. I have seen on the MHPS site that Frank and Dave suggest maybe 60/0 or 70/10 or whatever. The bottom line is you have to do some work here and know what your market is and what you are buying.

I tried to and have learned from all no matter what site people own or post on. It has been the most profitable and free education I have ever gotten.

Oh by the way I just finished paying ($150K) for my daughters law school education. I wonder what 60/30 60/0 70/10 rule she can apply with a $75K a year JOB.

God I love free education Thank You MHU and MHPS

Best to you Rick Ewens