Level of reserves when buying MHP

4 Replies

Hello everyone,

I trying to get some idea of how much in reserves need to be held when buying a MHP. Obviously the size of the park has a bearing on reserves needed as does factors such as the park situation for the black water disposal, city or septic. I am looking for some ideas on the subject so I can take this into consideration as I evaluate the purchase of a park.


This question has come up in the past use the search function top right. 

We would need more information. 

  • size
  • how many homes are owned by the park. 
  • what are the utilities and what is the age.

    Being a MHP you will run into other issues then a residential or commercial property. On a standard property they recommend at least 6 months of expenses if everything went vacant. But on a MHP you have other risks as well.  

    Hello Ryan,

    That is sort of the allure to me of MHP's. Very little chance of everyone leaving, especially if they are tenant owned homes. I know that is the rule of thumb for SFR is to have 6 months to cover the cost, but the dynamics seem more like an apartment complex to me than a SFR. I am not too experienced in this, but certainly appreciate all feedback to help me wrap my brain around this.



    You want enough to get you through the worst case scenario. Your well goes out, your packing plant goes out(don't buy a park on a lagoon system), several septic systems need repair, to cover a large water bill if park is submetered, and you'll want some to fix up those vacant POH's too.

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