Mobile Home Park Owners (100 units +)

[Account Closed]

What are your experiences in owning mobile home parks. What type of expenses do you incur and how quickly do you make your ROI considering you only rent out the land and don't own the mobile home itself.

[Jim Johnson]

This is a very wide open question, as the return depends on so many factors.

All property like this will depend on how much you put down, and upside you might create through operations changes. A stable property should return about 15% of your investment in cash, and then you will also have tax benefits for deprecation.  The parks I buy, have much better returns but I look for some sort of upside as part of my entrance strategy. I might look for something more like 30 - 50% cash on cash return at the 18 month mark. If the park is a flip, I might forgo cash on cash and seek equity (value) upside. So I might see a $400,000 park be worth 1mm plus after a few years. Everyone strikes out at this from a different angle, so returns will vary.