I am considering tying up an MHP for $47K/lotNo vacancy, and rents are $528/mo, plus water reimbursement (within line of market)City water/sewerStandard OpEx profileMostly older single widesI will have a full DD period and will follow the boot camp guideAm I out of my mind? (it just seems like so much per lot)
As long as we’re talking lot rent only at 528 that’s about the same as paying 20K a lot at a 225-250 rent. Not cheap but probably not crazy. My low value .02 personal concern would be where is the upside on that unless housing is spectacularly expensive?
It’s all about the numbers. If you can get a good spread at $47,000/lot with upside, then the deal may be fine. That is a really high lot rent, however, so George is right – you better be in an area of extremely high SFH prices and apartment rents to make that work.
I’d do that deal if 2BR apartment rents were $1,100 or greater…-jl-