All Forum Posts by: Reid Hanley

 @Ryan Groene, you may be right.  I'm too new to know if this is a trend the industry is moving towards, but I can say that in the NW Florida market, the majority of parks are operated as POH parks.  I haven't tried to convert tenants to home owners yet, but my feeling is it won't be widely successful.

@Bill F  That is an incredible reply. Really appreciate your thought process. The 3 - 5 multiplier is exactly what I had in mind.   But now I have some reasoning behind it. Would like to reach out to you directly to discuss this one in more detail.

I need some input from all you BP MHP Pros! 

I met with a seller yesterday who has an 81 unit all POH Park for sale based on a 7x multiplier of his annual rental income.  Would anyone here buy an all POH MHP based solely on a rental income multiplier?   In my mind POH parks are worth the value of the land + the value of the homes + some consideration for the amount of income they produce.   But I know businesses are often sold on a 5-8x multiplier of gross sales, which basically is what rental income is to MHP.  If all valuation factors are in the normal range (ie. Expenses 30%, Rent rates at market value,...etc.) is a 7x income multiplier reasonable for a MHP? 

Try your connections with local banks first. Banks that know the location and value of the area you are investing in are your best bet guaranteed.

@Celeste Fackrell the roofs on these are slightly curved, convex so to speak, so not flat and not pitched.  These are early 70s era trailers, and I have a several with this roof shape.  I'm laying the metal roofing sheets across the entire width of the trailers matching the curve of the roof.  The overhang past the eves will be free hanging so to speak, so we will limit it to no more than 12 inches, maybe a little less.

I am in the process of doing this right now. My plan is to place a reflective thermal barrier on top of the existing cool coat roof, then add 2 x 4 furring strips for the needed air gap and then 26 gauge sheet metal roof overhanging the eaves by 12" so rain will run off the side away from house, not down the side of the house.  Materials will cost about $1800 per home. But should provide 15 plus years of good protection.

Good luck.

Thank you @Dmitriy Fromichenko.  That is all very good advise and well explained.  I'll be in touch to discuss this further with you.  Thank you for the very informative video as well.  Hope others have seen this...Solo 401k really well explained!

Thank you too @Justin Windham.  I'm aware of this feature and was thinking of possibly using a solo 401k loan to attain the property.  Not decided yet.  We are still shopping for traditional financing.  

What I mean @Dmitriy Fomichenko is that I am looking into setting up a self directed 401k that I could use to purchase this property as an investment.  I'm aware I can't benefit directly in the purchase, rather my 401k has to benefit.  I still have much to learn about the allowed and prohibited transactions, but I'm doing my research now.

First thought is where is this in relation to where you live?  If it's not close to home it doesn't sound like it's worth the effort.  Declining population, high crime,...etc.  are hard to manage from afar.  There are lots of other properties you can find without those hurdles to overcome.

@Reid Levy...no I didn't.  The lenders I spoke with were not able to approve it on a Mobile Home property.   Unfortunate but not unexpected I guess.  It is a challenge getting debt in place on these types of homes.  Looking into self financing through a self-directed 401K now.