Cashflow Per Lot Requirements

[Logan Hartle]

When buying a MH Park what cashflow per lot are you looking for?

Also do you look for a certain NOI as a percentage of Gross Income?

[Frank Rolfe]

You first look at the net income from strictly real estate (lot rent, renting of any stick-built homes and apartment) and not including an personal property income (rental mobile homes) and then apply a cap rate (typically a range of 8% to 10%)

The normal expense ratio is 30% (if tenants pay water/sewer) to 40% (if park pays water/sewer),

Cash flow per lot is not a normal metric.