Investing In Mobile Home Park In Illinois

[Linh Khuc]

Hi All,

I'm from Illinois, have been focusing on commercial multifamily investing and I came across MHP in Illinois, I ran through the numbers and it looks pretty good, details is following:

-  5 acre lot, 30 lots and converted to 24 due to city requirement.

- Lot renting only, tenants bring their own mobile home

- Rent is running ~$365/month, 85% occupancy, 15.5 % cash on cash return

- City water & sewer, gravel driveway

- Tenants pay trash, gas, electric, Park owner pay water

From little I know about MHP, I think the following:

-Pros: good on cash return, low maintenance (not having to manage the mobile home), only manage the lot (trees, snow removal...)

-Cons: tough to find new tenant (they need to bring their own mobile home), gravel driveway will be tough to shovel during the winter

Is MHP a good investment in the Midwest, especially in Illinois ?