Mobile Home Park (POH vs. TOH)

[Jeff Petsche]

Question for those who are MHP owners: 

In your opinion, what is the ideal mix use for a MHP and in your opinion, do you feel there is a bigger ROI/IRR upside having POH in your park vs. TOH?

I know there is more liability and expenses that go into having POHs vs. TOHs (my research has showed that expenses on a MPH can be upwards of 50%+ if you have POH vs. 35% to 40% if you only have TOH. 

Our partnership group is looking at several MPH deals through a contact and their turnaround plan and business model is to fill vacant lots with POH, or if there are abandoned units in the park, turning them into POH. 

Thoughts and Thank You

Jeff

[Alina Trigub]

@Jeff Petsche

Most MHP operators prefer to have a greater number if not all of MHs to be TOH. While it may not be the case at a time of a purchase, most tend to offer "lease to buy" option to their future tenants to lower their expense. You may say that your income will be lower as well, however, it is still exponentially higher if you look at both sides of the equation: income and expenses. So bottom line, a preference is given to have most if not all MHs to be TOH at the end of the day.

Best!