All Forum Posts by: Jason Noel

Thanks Brenden, the 2.5 million is for ownership of the mobile homes, I have the rent roles and each property has gross rents between 15k - 17k per year for 276k gross. I agree, the NOI listed is too high. Looking at the pro forma the maintenance is much lower than I would anticipate. The majority of the homes are 2015 or newer. A negative is there is not a lot of room to push the rents up in the market (I'm in the DFW area) and there is no room to expand. It's also 100% occupied so there is very little value I can add. Which is what concerns me the most.

My calculations puts the NOI around 195,000, which puts the cap around 7.8. The commercial properties I've been looking at are between a 4.6 and 6.4 cap. What is a reasonable cap rate on a trailer park?

@Jay Hinrichs

Thanks Jay,

Great point, There are 18 septic tanks and city water.

I am looking at purchasing a mobile home park in the town I live in. The basics of the listing are:

Purchase Price: 2,500,000.00

NOI: 224,000

Cap Rate: 8.96

5.311 acres

18 mobile homes

Renovated in 2020

I have never made an offer, let alone purchased a mobile home park. I am local and would like to handle the management myself. What advice do you have? What mistakes should I avoid?

Like I said, I’ve never done this, so please be brutally honest with me. Thanks in advance!

Outstanding! Thanks for sharing!

Thanks for passing on the info! I am new to rental ownership. What should I be putting in a lease in regards to tenants having renters insurance? Does renters insurance typically only cover loss of personal property?

@Katie Greenman make sure you max out your Roth, it’s only 6,000 per year and it grows tax free. You can’t beat that! It sounds like you have a good head on your shoulders, you are going to be a millionaire by 35 if you keep your spending under control.

If the 10k comes from a tangible asset like a 401k or rental property, I want the 10k. If the 10k comes from a pension or something similar that ends when you die, I’m taking the 1 million.