Skip to content
Mobile Home Park Investing

User Stats

713
Posts
583
Votes
Logan M.
Pro Member
  • Investor
  • Provo, UT
583
Votes |
713
Posts

Mobile Home Park Investing Vs Development

Logan M.
Pro Member
  • Investor
  • Provo, UT
Posted Jan 24 2024, 10:57

I will make this a quick post with bullet points.

Key takeaways from my experiences doing development projects:

1. If you are developing typical multifamily banks are more excited about them than a MHP.

2. Development creates opportunities to create a higher and best use and sell for a profit.

3. The development of actual buildings creates huge depreciation potential.

4. I would also argue that buildings are more liquid than a mhp in most scenarios.

Takeaways from MHPs

1. You can't beat the cash flow.

2. Mobile home park investing creates the ideal long-term hold for future development.

3. There is more low-hanging fruit in the value-add on mhps than building new developments in most cases, dollar for dollar.

4. I would argue the risk is significantly lower buying an existing mhp than building a new building.


I am curious to see what others think and how their experiences compare.

The attached image is a rendering of one of the eight apartments we are currently building to be done in May.

User Stats

545
Posts
368
Votes
Nathan Harden
Pro Member
  • Real Estate Agent
  • Puyallup, WA
368
Votes |
545
Posts
Nathan Harden
Pro Member
  • Real Estate Agent
  • Puyallup, WA
Replied Jan 24 2024, 11:15

I am just starting to dip my toes into MHPs.

From your experience, do you find it easier if you have all mobiles in the park being tenant owned rather than being parked owned?

User Stats

4,693
Posts
3,345
Votes
Jordan Moorhead
  • Real Estate Agent
  • Austin, TX
3,345
Votes |
4,693
Posts
Jordan Moorhead
  • Real Estate Agent
  • Austin, TX
Replied Jan 24 2024, 17:00

@Nathan Harden my park is all tenant owned homes and it's extremely easy to manage with a very low expense ratio

The Moorhead Team Logo
BiggerPockets logo
BiggerPockets
|
Sponsored
Find an investor-friendly agent in your market TODAY Get matched with our network of trusted, local, investor friendly agents in under 2 minutes

User Stats

713
Posts
583
Votes
Logan M.
Pro Member
  • Investor
  • Provo, UT
583
Votes |
713
Posts
Logan M.
Pro Member
  • Investor
  • Provo, UT
Replied Jan 25 2024, 10:41
Quote from @Nathan Harden:

I am just starting to dip my toes into MHPs.

From your experience, do you find it easier if you have all mobiles in the park being tenant owned rather than being parked owned?


 A lot is going to come down to the competency of those who will support the park like a Handyman and other trades.

We have parks with both, park owned and tenant owned.