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Logan M.
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Storage vs. MHPs

Logan M.
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#1 Mobile Home Park Investing Contributor
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  • Provo, UT
Posted Jan 19 2024, 16:20

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 Moorhead
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Jordan Moorhead
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Replied Jan 22 2024, 07:19

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

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Henry Clark
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Henry Clark
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Replied Jan 22 2024, 08:00

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.  

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Logan M.
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#1 Mobile Home Park Investing Contributor
  • Investor
  • Provo, UT
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Logan M.
Pro Member
#1 Mobile Home Park Investing Contributor
  • Investor
  • Provo, UT
Replied Jan 22 2024, 09:29
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

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Logan M.
Pro Member
#1 Mobile Home Park Investing Contributor
  • Investor
  • Provo, UT
587
Votes |
716
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Logan M.
Pro Member
#1 Mobile Home Park Investing Contributor
  • Investor
  • Provo, UT
Replied Jan 22 2024, 09:30
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.