All Forum Posts by: Daniel Ryu

@Marlen Weber

Thank you for taking the time to leave your feedback!

Since both Tiny Homes and MHP are manufactured homes, I tend to look at them through a similar lens. But perhaps they are completely different products in the eyes of the consumer.

@Reid Hanley

Thanks for the update - best of luck!

If you ever want to bounce ideas around, feel free to reach out.

@Kam Su

My questions have to do more w the economics of it

1) Are they somehow easier to develop / get permitting for than an MHP?

2) How much do the units cost? What’s the infill plan? Buy, fill, then sell off?

3) What’s the exit cap look like and how does it compare to an MHP?

4) Are you getting higher rents?

5) How big on average? Based on that who’s the target tenant? (ie Singles?)

As far as demand I’m less familiar w how much there is.

@Ed Emmons

Interesting note - UMH, 3rd largest publicly traded REIT, has been working with lenders to get a credit facility to buy rental MHs for their community at apartment rate financing - that's potentially a sub 4% interest rate as opposed to I believe 6-7% that they're currently paying.

So... some of the bigger players in the industry are trying to make the case that rental MHs should be treated as apartments - and it seems like your experience lend credence to their case.

@Cory Rayfield

Most listed parks probably trade for around a 5.5-9% Cap rate nowadays.

The factors include: size, area, stability, quality of asset - the usual.

@Dan Travieso

Brandon's focused on buying the whole park, not the homes.

My guess is that they're focused on selling off the homes to tenants so they're not responsible for the R&M on homes.

For the homes that you had, were they in MHP communities? Or were they on their own land?

If they were in MHP communities, what were the lot rents?

@Davis Evans

Agree w what Frank said. Just a numbers game and need to factor in risk of execution.

@Kam Su

You thinking about developing a tiny home community?

@Wade Joseph

If that park sells the new owner is likely to raise that lot rent. In that case unless you can continue to raise rents, your spread might be squeezed.

@Eden Lutchmedial

Your plan is to buy and rent it out?

How strong is occupancy in the park? Is there high demand? Will you be on the hook for lot rent if the home sits empty?

Also, any upgrades needed?

$800 lot rents usually mean a tenant class that can afford to buy. Are the sellers having trouble selling?