What does it take to stay full?

Since I have embraced the business model of self-financing MH sales as a method to fill vacant lots in my MHP a lot of good things have happened. Now, the full occupancy finish line is in sight. I have had thoughts regarding the ongoing opportunities/challenges that resident turnover presents rolling.

From the data that I have read on the subject homeowners (all-types housing) sell and move on average every 6.5 years. My MHP has had a lot higher resident turnover rate during its 13 years of existence, but during the past 3 years it is trending sharply toward the longer term.

So, going forward say I use a turnover rate of 5 years; should I prepare to buy and resale 20% of the homes annually? If so, would that extrapolate to my annual cash requireent of 20% of the combined wholesale value of all homes in my MHP?

I have read through the archives on this and the CREonline site and have not read any posts on this topic. Has anyone a rule of thumb for cash requirements for home retention in park resales?


Your numbers look reasonable from what I’m reading but if you could rephrase your question a bit someone may be able to better help. I see high repo rates for the first 2-3 years than it starts dropping dramatically.

Best wishes,

Ryan Needler


Did you attend the Mobile Home Millions IV in Orlando Florida?

Matt Daniels from Clayton Bank and Trust gave a great presentation on the relationship of defaults to down payments and terms for all different credit scores. He spoke from a tremendous experience vantage point. His boss Mr Clayton at one time had 25000 + (yes 25 thousand ) mobile home spaces spread out across the US. I will try to scan the file and put it in a file that we can all share on the forum. It is very interesting. Lets put it this way. You will get 50% of your homes back over 10 years when you finance D paper. Shorter terms are better than long and more money down is always better. I see many post regarding notes and partners and sharing profit etc. I take a 50% expense away from whatever the cash flow is. Example $200 cash flow to me is a potential $100 profit. I always have to save for the repair bill that will far exceed the income of some foreclosures. There is one professional from another site that says he would rather give all his homes away than do financing. Obviously his experience was real bad when it came to financing mobile homes in parks. In fact he said he lost $1 mil or so with park owned homes. We who own infill parks know we would get nowhere without the ability to finance and place park owned homes in our communities.

Rick Ewens

Rick, Ryan, I didn’t hear get to MHM4, I was unaware of this or the creonline communities at that time. I would be interested in that data.

My question really was not regarding repo rates and what that involves, just people moving for various life reasons and the amount of cash that I should be able to keep in use by buying-selling operation of this type situations in my MHP after the infill phase has passed.


That is a very difficult question to answer and I would say it is more a community by community question than anything. What is it going to cost you to keep homes in your community? I have $250K available at all times to buy homes from whomever and for whatever situation that might arise.

I am ready to make a deal on a home at anytime. Again I believe this is a case by case community by community situation. My community is a developement community and I dont want any homes to be taken out.

On another note I will say sales are fantastic right now and we will soon be selling new homes. I personally cant wait to get out of the repo purchase and rehab business model.

Rick Ewens