Valuing Mobile Home Parks

[Austin Works]

Is there any content you would recommend for learning this skill? I own SFR rentals, but mobile homes seem to be a completely different animal. Should I target park with owned mobile homes or just parks that collect lot rent? Any advice is appreciated.

[Ryan Groene]

There is plenty of free material and material that you can pay for. General rules of thumb exists In the business. Like if it’s city water and sewer your going to be In the 30%-40% expense ratio. Depending on whether you or tenant pays for water or sewer. And this assumption only holds true if you have a park greater than or around 25 lots and lot rents aren’t below $225 or so

If private utilities or mixture of city water/sewer your expenses are going to be 40-50% range. 

Also there a lot more factors that go into underwriting a deal. Like debt, location, age of homes, infrastructure, density, POHs vs TOHs.  How many filled lots. How many vacant. 

Any questions please reach out