What data or platforms do you use to vet MHP investments?

Question

Hello, I'm fairly new to MHP investing and I'm looking for data or research that can help me vet opportunities. Any suggestions? Thanks

Logan M. · Answer

@Michael A Pansolini is 100% correct but with the data being poor it creates a massive opportunity to own a portion of the MHP space. There are a number of books on Amazon you can read but I would suggest reaching out to @Frank Rolfe or @Mario Dattilo.

I would also be happy to jump on a zoom call with you and answer any questions you have about the space that I can answer.

Michael A Pansolini · Answer

Manufactured Housing data available for public consumption is sparse (There is definitely an opportunity for someone to build a database with relevant market and submarket level data including MHC rents, occupancy levels, and average resident household income (to name only a few). There are strategies that institutional investors use to approximate market rent by looking at neighboring multifamily. Further, you could "apply" for residency in a neighboring community to find out what they are charging and then depending on the quality of your community and its class (A+ through C-) you can decide to increase or decrease rent from there. I'd also look into the employment and median household incomes in the area to determine whether they are in the ballpark for your target demographic. Please feel free to reach out to me to discuss specifics. I'm happy to help.

Andrew Keel · Answer

Hey there!

Welcome to MHP investing! To help you vet MHP opportunities effectively, here are some suggestions:

Market Research: Study local MHP comps (occupancy rates, rental rates and condition), review major employers, median income, population trends, etc. We use bestplaces.net and datacompusa.com- look at market data drop down on this website for this. It also helps to get your boots on the ground and drive through the market.

Local Regulations: Understand zoning laws pertaining to MHPs in the area. Call the zoning dept. and ask about their process and restrictions on allowing the MHP owner to bring in new and used mobile homes to fill vacancy. Ask for a zoning certificate on the parcels of the subject park.

Networking: Connect with and possibly partner with other experienced MHP owners/investors.

Online Resources: Explore forums like this one, and the Mobile Home University Forum. Also try attend the MHU boot camp virtually (worth every penny) to learn how to value MHP’s.

Financial Analysis: A real quick, back of the napkin way to estimate the value a park is with this equation: # of Lots Occupied x Market Avg Lot Rent Amount = Monthly Gross rents X .60 (assume 40% expenses) = Monthly Net Income x 12 months = Annual NOI/.09 (assume 9 cap value) = Estimate of value.

Stay Informed: Subscribe to industry newsletters and news resources (MHInsider for example).

Remember that MHP investing can potentially be a lucrative venture, but it also comes with its own unique set of challenges. Take your time to research, evaluate and speak to professionals about potential opportunities- don't rush into any decisions. All the best with your MHP investing journey! If you have more specific questions or need further assistance, feel free to ask.

Good luck,Andrew Keel

Carlos Ptriawan · Answer

sponsor's track record that's all. That's when I'm investing at LP. If they have been around before BP exists, that would be awesome.

Jordan Moorhead · Answer

I would take all of @Frank Rolfe's education and you'll learn everything you could ever want to know!

What data or platforms do you use to vet MHP investments?

What data or platforms do you use to vet MHP investments?

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