What’s the typical expense ratio for MHP were all units are TOH

Member since 2020 · 2 posts · 1 vote

I am analyzing some deals that have 50% or higher TOH (Tenant owned homes) on MHP (Mobile home park). I am running into some unknowns. Does anyone know what is the usual expense ratio of MHP deals that have this type of high TOH. Let’s say a typical park of 10 pads with all occupied and are TOH.

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Logan M.

Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes

I would second @Jordan Moorhead.

The biggest factor will be your amenities like a clubhouse, park, pool etc (CAPX) and your utility set-up. Good set-ups can be fine on septic tanks but you can also have nightmare scenarios with septic tanks.

I would never guess on these numbers though, you need to get historical data.

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Jordan MoorheadBusiness Member
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
2y
30-40% is a typical expense ratio, on the lower end if they pay all utilties
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Logan M.
Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
2y
I would second @Jordan Moorhead.
The biggest factor will be your amenities like a clubhouse, park, pool etc (CAPX) and your utility set-up. Good set-ups can be fine on septic tanks but you can also have nightmare scenarios with septic tanks.

I would never guess on these numbers though, you need to get historical data.
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Bonnie Griffin KaakePro Member
Real Estate Consultant · Denver, CO · Member since 2021 · 666 posts · 389 votes
2y
@Jordan Moorhead While you are exploring opportunities in mobile home parks, get a no cost estimate for a cost segregation study, when you start focusing on one or two. You will benefit if you don't have to pay taxes for a while until you get the upgrades in place and work on increasing your rents. You have nothing to lose and a lot to gain.
[email protected]303-475-4459
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