Mobile Home Development

[Nate Raynor]

Hi All, 

I have an opportunity to purchase a piece of land that I think will be great for a mobile home park given a number of location constraints and opportunities. I have a strong background in multifamily and retail development but I have never done a MHP before. Does anyone have a good proforma for evaluating an MHP?

On the surface it seems straight forward, however, in my experience anything straightforward is almost always not straight forward. 

Thank you!

[Jay Hinrichs]

other than the obvious land use rules. ( is this Oregon ).

the main thing we found when looking at land to do a park on in Oregon was Absorption.

A lot of money out to buy the dirt then the cost to set up the park which can run 20k plus per pad. then the time it takes to fill the park.

those are the calcs you have to run to see if its going to work.. Of course if your all cash drag and holding costs wont matter in the long run.

So for us they simply never pencil from ground up because of the cost and absorption time.