Orlando, FL · Member since 2011 · 18 posts · 3 votes
In apartment investing, you see common numbers thrown around... assuming NOE~50%, you need to cash flow > $100/unit after debt services are paid. So a goal for someone might be to amass 84 units to retire on $100K/yr.
Most MHP owners will say that renting only the lots has a lower operating expense and less hours spent on managing the property than if you were managing the lived in unit (mobile home or apartment) as well. Assuming your income is from lot rents (not renting the mobile home itself), what monthly $/lot are you looking to make?
Rental Property Investor · Denver, CO · Member since 2008 · 355 posts · 324 votes
13y
Joe,
This is an interesting question. Let me say- my answer does not include debt service. I am looking for something on the buy side in the neighborhood of 60 - 65% of the gross. Because space rents very, I can not really put a dollar figure on this equation.
Of course, if you lower expenses or do something to increase income- that goes right to the bottom line and your return goes up. From the initial valuation side tough- your expenses should be in the 40 - 45% range of gross.