BiggerPockets

I live in CA where MH parks are around, but not very popular (about 4.5% of total residential housing). Finding the lot rents are easy enough, but how do I find what the unit itself would rent for? (I plan on buying units and selling or lease/optioning units).

I've heard that you can look to local lower end apartments and subtract 20% but that seems like a rule of thumb at best.

Call on a couple MH's that are for sale or rent and see what the payments are.

George Allen who is considered the guru of consultants to manufactured housing community owners has a fairly complex and accurate formula for setting rents and he gives it away for free. I don't think I am allowed to put his email or phone number in this post, but his company GFA Management is listed in the Indianapolis area phone listings, and his number is also on the Manufactured Housing Institute websites under Indiana members.

To sum up everyone's answers, check the local market. There are various ways to do this, as others have pointed out, and I recommend you use a few different methods to determine a reasonable rent.

Hi Sean:

Although MH's are not Real Estate, some people list them as such and rent them. Hook up with a Realtor friend and have them run some possible comps. The price that people are asking for is different than what they actually rented for and the latter is what you need for a more accurate amount. I like Kyle's idea of driving through the park, making new friends and/or talking with the park manager.