All Forum Posts by: Dominick Dahmen

@Ryan Groene

They aren't true cap rates as they include POH rent. But they are all over. I'm just starting to dig into the due diligence on them.

Hey everyone,

I'm really getting excited about Mobile Home Park investing. I'm noticing a lot of "turn key" or fully occupied MHPs going for a 10%-15% cap rate. Is this because they just want to retire or what?

@Jack Martin

That's awesome! I believe the Park if overpriced though. How do I get it under contract and then lower the price? Also, I'm afraid to get it under contract when I know I can't get a loan yet and I'm still in the process of finding investors for the down payment.

@Geordy Rostad

Sounds good. Thank you

@Geordy Rostad

Actually now that I think about, the POH make up a pretty good chunk of the annual income. 49,200 of the 176,000 gross. Is that a problem?

@Frank Rolfe

Well it seems like they are sophisticated investors because the stated reason is to focus on other portfolios. So that's why it was confusing to me.

@Frank Rolfe

The question I have, is if it's so easy to raise lot rent and they already have a plan, why don't they just do it?

@Geordy Rostad

Only 4 are park owned so I feel like that's a good number.

@Frank Rolfe I see.

My thought was similar to how you can get sellers to contribute to closing costs, maybe you could do the same with renovations.

@Frank Rolfe Thank you! I'll get on that! One more thing I forgot to mention is there is also a duplex included. $18,000 of the income is attributed to that. The only thing is that there is no Cap Ex or vacancy considerations with it. So that brings the return down just a tad, but not enough to kill the deal.

What do you think abiut asking the seller to contribute money to park renovations like landscaping to help raise rents?

Or possibly to buy POH or pay for tenants to move their homes to the open lots?