Multi-family vs. mobile home park investment

[Lara N.]

Greetings,

I'm in the midst of analyzing which investment route to take, either a multi-family (duplex) or a smaller mobile home park.

From my side, I see typically more upside potential with purchasing a commercial mobile home park as you can possibly add more leasing spaces & there's more acreage to work with in terms of opportunities for additional income.

What are your thoughts on this & what are the general pros/cons of both investment platforms?

Thanks

[Belinda Lopez]

Depends on how small of a Park and hundred other variables.

What is the Cap Rate?  that helps equalize different types of investments.  What are you looking for; cash flow with low maintenance or do you want to be a landlord?

MHPs have lower insurance and tax rates.  There is plenty of commercial funding by banks and others who know the asset class.  You are only renting the dirt so very little maintenance but will depend on how the park is setup.  Does it have city water/sewer and streets?

Yes, I have a bias toward MHPs but that's b/c I do not want to be a landlord and have to fix other folks toilets.  For others, it's all about cash flow.  What are your goals and what does each business model have for your style of investing?