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?