Need Financing for Mobile Home Park

I need financing for a Mobile Home Park. I also would like to receive info on a mobile home park evaluator.

I am new to the site. I should have searched the site for information about financing. I found info in the resource section.

I still need help with valuing a MHP. I am looking at a 116 lot MHP. Monthly lot rent is $105.00. It is well-maintained. It has 25 vacant lots. The water bill is $1,400.00 monthly. I do not have a list of total monthly expenses. The asking price for the Park is $1,100.000.00. This seems high to me.

Seller may be willing to hold 20% down payment. Can anyone help?



Base on 60/30 rule, the value of the park imo is $652,050 based on lot income excluding land and park owned mh’s values. $652,050

= (6091105)+(3025105). What state is it located in if you don’t mind telling? If you pay close to that, then it is probably a good deal, but need to do more due diligence. Give us more info about how old of homes, general park condition, any maintenance/repair needed to the infrastructure etc.

my 2 cents…

Anyone else can pitch in…

Thanks for the information. I am located in Alabama.

I am planning to sit down with the owner, Thursday evening. I will have more info after our meeting. The Park condition is very nice. Very well maintained, paved roads, no major repairs. Septic Tanks, one possible drawback is they were installed over 20 years ago. There are no Park owned homes included. The Tenant owned mobile homes, range from late 70’s to present year models.

I failed to mention one important fact. The monthly Lot Rent can easily be increased to $125.00. Surrounding MH Lots are $125.00 - $150.00.

Hello Again! I spoke with the Sellers of the MHP.

Purchase Price is $1,100,000.00.

30 acres

114 Spaces

75 Occupied Lots @ $105.00

39 Vacant Lots

76 Septic Tanks

1 Main Water Meter - Monthly Expense $1,600.00

Paved Roadways

Liabiblity Insurance - Yearly Expense $2,000.00

Land Tax - Yearly Expense $2,800.00

Outside Utility Lights - Monthly Expense $ 200.00

I failed to get Yard Mowing Expenses.

Using the 60/30 Rule, do you always use the present monthly income? Surrounding MHP Lot Rentals are $125.00 - $150.00 monthly. Knowing this, should I figure in the middle of the two? (Present and Future)

Please Advise.

Use current rent income not pro-forma or future.

Thank You for the info.


I recently purchased a slightly smaller version of this exact same park (mine is 88 spaces). I’ve found that increasing rents has been easy. I’m now in the process of doing ‘Lonnie deals’ to improve the occupancy to 100% over the next several years. For your park, I might pay up to $745,000 (back of the envelope) if rents can indeed be raised that much/easily. On my park, I negotiated the purchase price down 22% just by pointing out a few deficiencies and using good ol’ fashioned persuasion.

I’m looking for new investments. Please contact me if you might be interested in a value-added ‘silent’ partner. Otherwise please consider this my free ‘2 cents worth…’

: )




What is 60/30 rule and where and what (6091105)+(3025105) represents the formula? Could someone break down what the each number represents?

Is this the rule for determining the value of the MHP?

Thank you,


60/30 rule is a quickie is-it-in-the-ballpark thumbrule for park valuation.

60 times the number of occupied (paying) spaces time the rent times 12 months


30 times the number of unoccupied (nonpaying) spaces time the rent times 12 months

Won’t it be better to price it by going CAP rate or Cash on Cash value? Maybe, MHP is valued determined differently.

Won’t it be better to price it by going CAP rate or Cash on Cash value? Maybe, MHP is valued determined differently. How does the MHP financing banks determine the value?

read again - its a QUICKIE method of doing MHP sorting: is this even in the ballpark of looking? Should I even talk to the seller/agent? If its nowhere closes to the 60/30 valuation, then its not worth bothering trying to dig for expense and income info, because the seller is not motivated.

think triage

This was a good topic post for me. Lets see if I got a good deal…

60 times the number of occupied (2) spaces time the 450 times 12 months $54,000?


30 times the number of unoccupied (4) spaces time the 450 times 12 months $54,000

= $108,000 if I did this right I made out well buying it for $90,000.

Its a 10 unit. I own 6 trailors. 2 are rented. I rent for at least $450/trailor.

Is this right? If I times it by 12 months it comes out to over $650,000??

doesn’t make much sense.

I think it is

of occupied spaces X rent X 60 + # unoccupied spaces X rent (if they were occupied) X 30 =value of park, not including value of park owned homes.

DO NOT include monthly rental of mobile home in this equation. So if rent is $450 and you believe you could rent a lot only for $200 then home rent would be $250 and lot rent for 60/30 rule would be $200 for each lot.

Mobile Homes are valued as if you were going to buy the home and move it to your park.

This is my understanding of the 60/30 rule.

This formula gives the investor a target CAP rate of 10