Hey everyone, I’m new to MHP investing, and wanted to ask some questions for the experts-
Do you have to live close to the MHP for this to be a successfull investment? I live in the the DC Metro area. No MHPs anyhwere around here. I would have to invest out of state. From the articles I’ve read so far, this looks like a very hands-on investment to be successful.
I currently own apartment buildings. The rule of thumb for buying multi-family is to try to land a 10 cap deal on actual income. Problem is, those ‘10 cap’ deals are in very poor and rough parts of town. And rent collection is typically a problem, along with many other tenant problems.
Do the same problems exist in a MHP bought at a current 10% cap? (i.e. Heavy crime, drugs, shootings, rent collection problems, vandalism, etc).
At what cap rate (if any) do you have to be concerned about that element in a MHP?
- Can I buy an existing MHP out of state, and have someone else completely run all operations without my involvment, like in multi-family ownership?
Thanks in advance for all your feedback.