Mobile Home Park Poll: Average Price Paid per Occupied Pad

[Keith Meyer]

Fellow MHP Investors,

I'm looking to get an idea for what you're seeing in your markets currently for average Price Paid per Occupied Pad. Preferably data based on actual transactions, but I'd also be interested to see what asking prices are looking like currently. I'm aware of the "multiply by 60/70" rule of thumb, but am looking for something a little more based on recent actuals.

In Albuquerque, which is the market I'm working to make offers in currently, I'm seeing prices per pad slightly north of $25k in recent sales. At an average lot rent of $350-$400/month in this market, it would take roughly $25,000 / ($350 * 12) = 6 years from a Gross Income standpoint to recoup your investment. From a Net Income standpoint at 50% expense ratio, this would be $25,000 / (50% * $350 * 12) = 12 years.

What are you seeing in your markets?