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- Provo, UT
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Mobile Home Park Investing Vs Development
I will make this a quick post with bullet points.
Key takeaways from my experiences doing development projects:
1. If you are developing typical multifamily banks are more excited about them than a MHP.
2. Development creates opportunities to create a higher and best use and sell for a profit.
3. The development of actual buildings creates huge depreciation potential.
4. I would also argue that buildings are more liquid than a mhp in most scenarios.
Takeaways from MHPs
1. You can't beat the cash flow.
2. Mobile home park investing creates the ideal long-term hold for future development.
3. There is more low-hanging fruit in the value-add on mhps than building new developments in most cases, dollar for dollar.
4. I would argue the risk is significantly lower buying an existing mhp than building a new building.
I am curious to see what others think and how their experiences compare.
The attached image is a rendering of one of the eight apartments we are currently building to be done in May.