Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Mobile Home Park Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 10 years ago on . Most recent reply

Account Closed
  • Kerman, CA
1
Votes |
50
Posts

Attention all LOT RENT Mobile Home Park Owners.....

Account Closed
  • Kerman, CA
Posted

How is your ownership of a lot rent park beneficial to you? Is your ownership absentee considering the fact that you do not own the mobile homes and therefore it requiring less attention? Is cash flow based on the amount of rent and spaces you have rented out? Types of expenses? Please share your experiences 

Most Popular Reply

User Stats

134
Posts
81
Votes
Collin Goodwin
  • Specialist
  • Denver, CO
81
Votes |
134
Posts
Collin Goodwin
  • Specialist
  • Denver, CO
Replied

Ajay,

1. Most MHP's are set up where the owner owns the land and rent's lots to tenants who own their own Mobile Homes. IMO, this is also the most desirable set up as you are not responsible for maintenance in the homes. In reality, many MHP owners lease park owned homes to improve occupancy.

2. Although you may not need to focus attention on the homes themselves, it is your responsibility to maintain all infrastructure within the park and make it a desirable and functional place to live.

3. MHPs are valued via NOI and often measured by CAP rate. NOI = gross rents - expenses. Cap rate = NOI/Purchase Price. Therefore, the more spaces you rent out, theoretically the greater the cash flow and park value.

4. I previously mentioned infrastructure as a owner-expense. Some examples of infrastructure would be: paved roads, electric, water, sewage, grounds maintenance etc.. it is essential as a park owner to understand your infrastructure. IMO it is most desirable to be on city water/sewage, but there is a cost associated with each.

Loading replies...