Hi, I’m trying to analyze my first serious investment opportunity. It’s a multifamily property that includes a duplex, a tiny home and a mobile home all one 3 acre property. I’d live in half of the duplex for a year as a house hack.
I’m using the BiggerPockets calculator but am unsure how to evaluate the mobile home. It’s a 3BR and recently remodeled but is probably 15 years old. I’m not sure how long it’s lifetime is and whether or not it can be counted on to cash flow. Does it need to be treated differently in the deal analysis?
Any words of advice on how to evaluate a multifamily with mixed types of buildings including a permanently installed mobile home?
I would omit the mobile home income altogether in your cash flow analysis. Figure out what the land, duplex, etc. is worth. Then add a separate value for the mobile home (which can be appaised or at least approximated). The mobile home is a depreciating asset, similar to a car. It may cash flow but you don't want to include it by applying a cap rate to that income.
Thanks! Very helpful. I walked away from that deal and landed a much cleaner one.