All Forum Posts by: Nate Raynor

Quote from @Robert Ellis:

Quote from @Logan M.:

Quote from @Robert Ellis:

Quote from @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.

 All these mobile home park investors imagine if they opened up their minds to truck parking facilities and did all the same utility improvement, higher density for parking than mobile home, didn't have tenants, same on site manager. Much higher returns. 

 Trucking is going through a major contraction right now and if self-driving trucks ever become a thing you are out of business.

 you still have to park self driving trucks my friend ... and only some portions of trucking are going through a "contraction". Flat Bed is super strong, aggregates and trucking that supports new construction is extremely strong right now and is booming. I'm not sure if you know much about these industries than what you listen to on the news. Every truck parking facility that is built in our market is fully leased up quickly. And here's a really good kicker, if trucking is in the tanks, all the trucks have to be parked right? There you go! 

Hi Robert. This is actually an interesting view, and admittedly I know nothing about this specific industry. I think the MHP I'm looking at wouldn't be a great fit given how far away it is from a major highway, but I like this idea. Do you have any recommendations or resources that I could look to in order to learn more?

Thanks for chiming in. 

Welp, that's embarrassing, so sorry Jay! 

This is a smaller site with an estimated 45 units. We are are currently modelling 4 per month, so we would fill it in a year or so. I had one person say that was overly conservative, but others think that's about right for being in the north Battle Ground area.   

How important were/are site amenities for your MH site? Laundry, park, playground, etc. I am seeing some amenities in our comps, but many don't. My team is split 50/50 on this topic.

Quote from @Rachel H.:

@Nate Raynor You may want to check the zoning on that piece of land before doing further research. There may or may not be restrictions on the land when it comes to placing mobile homes (either new or used) on top of the land. Hope that helps! 

 Thanks for the comment Rachel. For this particular property, the zoning does have mobile homes as an Permitted Allowable Use. But yes, checking the zoning is always a must ahead of time. 

Thanks for the comment John. 

What were you seeing for absorption? The site I am looking at is in North Vancouver market - just north of PDX. Were you looking in the greater pdx MSA?

Most of the conversations around absorption have been surrounding the eviction and pad turn risks. Discussion has been around 4 month during initial lease up.

I am not planning on going in all cash, but likely a 50/50 debt to equity.

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!

Hi All, 

Working on a multifamily development deal and as I am wrapping up modelling I wanted to check in with the group here regarding annual income growth vs expense growth.

 What are underwriting for rent growth vs expense growth over the years. Do you trend rent growth above expense growth in all years or do you match income and expense growth after the initial couple of years? I'm running a 3 year merchant sale, 5 year hold, and 10 year hold. 

Thoughts?

Hi BP,

Does anyone have a contractor recommendation in the greater Portland, OR area with experience and approval for a 203k project?

Thank you! 

On this note: what are your preferred PSF budgets for furnishing your units? I am currently working on a model for this exact thing and have budgeted 15k per unit (~$21PSF). Average unit size 688 SF 

Hi BP,

Has anyone looked at how much on a percentage adjustment of construction costs adding prevailing impacts costs? 

We are thinking about going the HUD financing route for our construction debt, but I've been trying to fully understand the cost implications of using HID. One of which is we will have to ensure we are using prevailing wages on the construction side.

Thank you!

Has anyone developed, or know of a 100% Live/Work community with greater than 35 units? 

Working on a deal right now where the local govt is advocating for a rather large LW Community which would have between 75 and 120 units live work.