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Updated about 5 years ago on . Most recent reply
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Cashflow Per Lot Requirements
When buying a MH Park what cashflow per lot are you looking for?
Also do you look for a certain NOI as a percentage of Gross Income?
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Frank Rolfe
#1 Mobile Home Park Investing Contributor
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You first look at the net income from strictly real estate (lot rent, renting of any stick-built homes and apartment) and not including an personal property income (rental mobile homes) and then apply a cap rate (typically a range of 8% to 10%)
The normal expense ratio is 30% (if tenants pay water/sewer) to 40% (if park pays water/sewer),
Cash flow per lot is not a normal metric.