In reading many of the conversations on this blog, it appears that the profit margin on renting of POHs ranges from around 0% to 50% (not including lot rent).
For example: If you rent a home in your park for $500/mo. and the lot rent is $200/mo., the net profit from the home rental ranges from $0 to $150 per month.
Is this what most of you park owners that have POHs are finding? If so, what type of multiple do you apply to the spread, if any, when evaluating the purchase of a park?
Brad Simmons: On the last page of this blog there is a post titled “Going Prices for Single Wides” that you replied to. You gave some great information on some of your recent home acquisitions and the gross margins you were trying to achieve. Were these examples park rentals?