Hello my name is Mike and I am a part time realtor in NY. New to this site. I want to invest in a mobile home park and would love to be part of this community. A few quick question? Im looking for cheaper end parks to start. What cap rate should I be looking for in a mobile home park? What is preferred POH or TOH? Thank you everyone in advanced! Excited to start building my portfolio!
Not sure what you mean by “cheaper end” but my experience is that manufactured home communities with lower rents are much harder to manage than those with higher rents. By “cheaper end” I presume you are seeking the communities with drug dealers, criminals, and perpetual non-payers, and they will eat you alive.
We had a few communities where we were targeting about $600 for lot and home rents combined, and the turnover was large. We put brand new homes and now all-in rents are closer to $1200. The tenant base is much stronger and our problems are much lower.
Good luck but be careful if your strategy is to invest in less desirable property.
You can definitely do a lower priced turn around park…but I would not suggest this as your first park. You’ll likely botch the approach and strategy and either want to quit or actually fail and file for bankruptcy. It’s not easy. There is real risk.
I’d suggest shooting for a middle of the road 3 star park that’s not overpriced. Decent tenants with decent average rents.
We’ve done rough turn around parks…you can buy them “cheap”…if you know how to turn them around you will make a ton of cash in the end. But you need experience before jumping into a wildfire. Trust me on this one.
Golden nugget: if you’re doing a turn around park, come in with plenty of cash.
Most of the larger portfolio park investors on this site will tell you to steer clear of POH units and stick to TOH parks. They are 100% correct, I do have one park that is 70% POH and our annual net is 35% better than if the park was all TOH. It 's in a unique market situation though with high rents and literally zero rentals available for the largely blue collar population with the ever important Walmart just down the road. We have fine tuned the management and maintenance so it requires very little oversight. We take very very good care of these homes. We call them baby chick eggs laid by the golden goose,
As such I have a passion for POH units but realize the market situations have to be just right.
Found a 13 pad park. 6 POH and 6 TOH. 1 vacant pad and 3 vacant homes. Park has a NOI of $35,000. Asking $255K. There is room for me to make more revenue. Thinking of selling the vacant homes to make them TOH. IS this even worth looking at? Trying to see what deals I should pass on and what are actually decent.
Mike- Certainly take a good look at it as the NOI if accurate looks great at 225. First thing I would want to know though would be did any income from those three vacant trailers end up in the year end 35 NOI? You want to buy on current CAP rate not what it was or what it possibly could be. If those vacant homes are not part of the income stream certainly best to sell them off. The other three POHs are open for more discussion.
There is a lot to dissect when you are evaluating something like this. Everyone here will help.
Seems decent, but you need to do the financial analysis. Do you have a discounted cash flow model? That would provide the details needed.
i’d be interested in the webinar!
Manny, you are the only one so far. I asked Mike if he wants to run through his deal (confidentially) together on my model. Let me know 3 potential times we can do this, and I’ll set it up. Looks like it may only be you and me, but hopefully Mike want to join. We will use the information that he posted on this site.
Michael, If you get this set up with Manny I wouldn’t mind just listening in. Pretty open all week and would enjoy the experience. Send me an invite with a time and I will listen in.
I would love to get in on this! What’s everyone availability like?
I’d be interested in connecting with you guys to see what assumptions you’re underwriting to right now. Would you mind if I listened in?
Hey Michael, I am interested in joining this webinar as well. Thanks!
Hi New member here. My name is Tony, from Ny. I’d be interested in listening in…
I’m interested too please.
I’m also interested. I’m looking for my second park. First next to Asheville NC. So far 50/50 POH and TOH. I did have to put lots of money into it- upgrading septic, water system, landscaping etc. I’m shifting towards more POH. Just bought a nice 2/2 mobile from a tenant for 15k. Ready to rent condition. Now renting for $1200 a month- with good tenants. This park is the golden goose. Looking for something similar. I’d like to join your session.
I am interested in joining this webinar and can make myself available most of the time. Thanks!
mnowa28, Mike, I’m located in North Carolina if you’re serious about investing in the south. I’m willing to help you, been in the industry 13 yrs. A lot of these investors n here will try to talk you out of any thing as they’re greedy. You may ask what I want. Let’s talk, I assist you in finding a securing the acquisitions And in exchange, you pay me to be your regional manager. If Interested contact me, 910 364-8122
Hey Joe, everyone here isn’t greedy. It’s called business. Unless you’re volunteering your services for free with zero personal agenda, let’s call it what it is. Your assistance comes with a fee, greedy much?