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Updated 5 months ago,
Evaluate SFH on Mobile Home property
I'm currently evaluating a potential mobile home park, while small (10 lots total) it does have a single family home on the same property. This property is of interest because of proximity to town and because of the rehabbed SFH. My question is do I run the numbers on the SFH as if it were by it self, then run the numbers on the trailers in park and take the average of the 2 cap rates?
Other notes:
It has been grandfathered in as a mobile home park. I have checked with the City to ensure that if I were to purchase property, I would still be allowed to operate as a park and expand. Good to go there. I just can't expand further than the 10 lots that are currently there.
2 TOH ($400/month, includes water/lot rent)
2 POH (vacant)
6 vacant lots
House is currently used a long term rental. $1200 per month.