Future of MHP investing

[Robert McConnell]

Hello all,

I am currently looking to reposition my small portfolio of SFR and duplexes into something bigger. I am reading Laura Cochran's MHP investing book and have listened to a few MHP podcasts on BP and other sources. So far I love a lot of what the MHP asset class has to offer as I am interested in cash flowing assets with an opportunity to add value and increase equity.

My question is what challenges or changes do current MHP investors see coming in the future for the asset class? I realize no one has a crystal ball but one concern I have is it that POH will become much more common than TOH. Particularly if the economy worsens and lower income demographics are hit particularly hard. Owning a park of mostly POH seems like a drain on CapEx and management resources as it is similar to owning a bunch of low quality SFR.

Also, do you see millennials embracing the MHP model as a place to live? The perception many have is that it tends to attract retired baby boomers on fixed income. That demographic won’t be around forever so who replaces them? 

Any thoughts or suggestions are greatly appreciated. I am still trying to wrap my head around this as a potential future investment but I want to fully understand the macro level considerations. 

Thank you!

Robert

[Chris Ebert]

@Robert McConnell, what type of MHPs are you considering? Based on your post it appears to be more lifestyle communities than affordable housing. As for the affordable housing side of parks, I can confidently say that absent a turn to Communism in this country, the demand for affordable housing will never go away.