Mobile Home Park Investing Vs Development

[Logan M.]

I will make this a quick post with bullet points.

Key takeaways from my experiences doing development projects:

1. If you are developing typical multifamily banks are more excited about them than a MHP.

2. Development creates opportunities to create a higher and best use and sell for a profit.

3. The development of actual buildings creates huge depreciation potential.

4. I would also argue that buildings are more liquid than a mhp in most scenarios.

Takeaways from MHPs

1. You can't beat the cash flow.

2. Mobile home park investing creates the ideal long-term hold for future development.

3. There is more low-hanging fruit in the value-add on mhps than building new developments in most cases, dollar for dollar.

4. I would argue the risk is significantly lower buying an existing mhp than building a new building.


I am curious to see what others think and how their experiences compare.

The attached image is a rendering of one of the eight apartments we are currently building to be done in May.

[Jordan Moorhead]

@Nathan Harden my park is all tenant owned homes and it's extremely easy to manage with a very low expense ratio