First, I am not trying to be mean. Just curious.
I buy MH’s for rental property. I generally earn 30 to 40% ROI per year. In addition, I get depreciation on the whole amount of the purchase.
I see the posts asking if a MHP purchase in question is a good deal. I put a calculator to the numbers and get an average ROI of 13%. In addition, you can only depreciate the improvements to the land.
I need to buy or develop a MHP in order to have some more sites to put my MH’s, but the returns does not justify the investment. What am I missing? I know a few MHP owners are cashing out because their park is in a prime location – especially in Florida. But most MHP’s that I have seen are in more remote locations.
My stock broker called me the other day asking if I would be interested in an initial purchase option (IPO) in a real estate investment trust (REIT) paying 10% in dividends with a very good potential of stock price appreciation. I told him that I am using my money to buy rental MH’s. He got upset that I would not be interested in such a good deal. I told him that I can make triple the return renting MH’s. He got real quiet.
If some of the MHP owners would reply with their ROI’s and how the ROI is derived, I would appreciate it. Thanks.