I’ve heard mixed opinions in the market — some say MH/RV mix parks are difficult to sell and are less desirable, while others see value in them. What’s your experience with these types of properties? Do they generally take longer to exit or command lower prices at sale compared to pure MH or RV communities?
Hybrid parks are great, but the market is even more important with this type of asset. Ideally, you want to be in a market that has a real economy. A hospital with other large employers close by won’t hurt your cause either. I would suggest avoiding cities/MSAs that are smaller than 45-50K people.
Long term RV is the way to go when you have a mix of RV and MH. You certainly don’t want to run a transient RV park in a MH park. Way too many moving parts and unless the park is in very large MSA and you have an awesome onsite manager, I wouldn’t try the transient model alongside an MHP.
I own several hybrid parks and they are great as long as you target the long-term tenants. The vast majority of my RV renters sign 1-year leases and they have no plans to go anywhere.
I have several Hybrid parks I’m working on now. If you are looking in OH, FL, OK, IA or NC, please reach out for more info. With day one cap rates ranging from 8-11% depending on market and condition.
Best of luck in your search.
Dominic
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