Storage vs. MHPs

Mobile Home Park Investing
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Storage vs. MHPs

Logan M.
Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes

I have the opportunity to expand a mobile home park I own or build storage units on the raw ground.

If I am looking at it as a direct comparison which would be a better play without getting lots in the weeds?

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  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    2y

    @Logan M. I don't love storage because there is nothing stopping more from being built

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  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    2y

    Assuming your market is good for both?  And you run your numbers.

    Do you own the mobile homes or just rent the lots?

    If you are just renting the lots, I would go with the MHP lots.  

    Storage building costs are really high right now. If your market for a 10x20 is $90 per month or less I wouldn’t do them.  

    If your storage rental rate is say $130 or higher I would do Selfstorage.  

    1Reply
  • Logan M.
    OP
    Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
    2y
    Quote from @Jordan Moorhead:

    @Logan M. I don't love storage because there is nothing stopping more from being built


     That is a great point

    1Reply
  • Logan M.
    OP
    Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
    2y
    Quote from @Henry Clark:

    Assuming your market is good for both?  And you run your numbers.

    Do you own the mobile homes or just rent the lots?

    If you are just renting the lots, I would go with the MHP lots.  

    Storage building costs are really high right now. If your market for a 10x20 is $90 per month or less I wouldn’t do them.  

    If your storage rental rate is say $130 or higher I would do Selfstorage.  


     That is great insight Henry. Based on your answer I should pursue the expansion of the park before storage. This location I believe would be better as additional housing.

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