All Forum Posts by: Erich Hauck

If your getting $1625 for 2/3 townhouse rent your in a good to great market here in FL, If you could get it under $150/sqft then your getting a good price. I imagine your contract is closer to $175 - $200/ft. Assuming your close to $200k contract price your ROI after taxes (2900), insurance (1000), vacancy (1 month), management (20% gross), and turnover expense (~1000) is going to be less than 4%. Tough market here to get a good return on SFR. Price to pay really depends on your personal investment strategy and target ROI.

Keith,

Here in FL it really depends on size/quality/location.  Smaller parks (20-200) have sold recently in the $10k - $20k/pad while the larger (200+ pads) high quality parks are selling for $75k - $100k+ per pad.  Of course on the high quality communities the cap rates are in the 5% range where the smaller parks are trading in the 7% - 9% range.  Hard to give you an exact idea unless you have a specific size range and quality your looking at.

Hey Curt, A few of our borrowers run hybrid parks. You’ll want to review historical occupancy for both sides. On the RVs you’ll want to know how long those people have been there, do they pay annually or do they only stay for the 3-4mo “season”, if seasonal do they pay a premium versus the annual, are sites open for short term stays (daily/weekly), how are the surrounding RV parks occupancy...The longer the term the easier to manage, less of a business. You’ll want to ensure all RV sites have adequate and working hookups along with amenities (bathhouse specifically) to accommodate short term stays if an option. You will likely have someone in the community run day to day operations, because it can be a cash business you need someone you can trust but always monitor the books! Your right down the road from our office in Lake Mary, be glad to look at the deal with you and depending on the asking price could help on the financing side if needed.

Option 3 may be your only choice depending upon the regulations in your state/county. Here in FL you need a permit to move a home and if the home is old and poor condition it will not be allowed to be transported across county lines (or at all if Kt does not meet certain construction requirements). But FL does have some of the strictest regulations in the nation but something to look into before buying. As others stated option 1 is your best bet if your allowed to move it. Just call local park owners to if there’s interest and post a CL add.

Thanks Dave, certainly looking forwards to learning from and meeting other professionals. Carlos, thanks for the warm welcome, always open to meeting up, I’ll be in touch with you to schedule some time.

@Bernadeau C. - Sounds great.  I live out in New Smyrna but commute to Lake Mary multiple times a week so would be great to meet up at a networking event in the Orlando area.  Things are getting wild again on both the residential and commercial side so be good to hear local input on how long it can keep going.  

Hey All, I’m a native Floridian that has been browsing the site for a while now. I started working on the commercial mortgage side several years ago after leaving “corporate America” and have not looked back! Just from my readings in the many different topics on here I certainly understand why so many come here for guidance. I look forward to learning more from the vast wealth of knowledge and experience from all that participate. My interest is mainly on the commercial side but will dive into SFR when the opportunity arises. Look forward to meeting the other professionals in the area and around the state!

Marco, our company specializes in financing MHC’s. Depending upon the quality of the community and leverage your looking for we could show it to some of our life companies. If you are still shopping we would be glad to get you some pricing if the deal fits.

If your planning on purchasing the community itself, assuming the structure is similar to that in FL, the Co-op would be dissolved and revert back to an investor owned community. There certainly are nuances to it, we’ve been involved with several here in FL over the last couple years. Feel free to DM or call me to discuss further.

Joseph Sangimino You are going to find it near impossible to find a lender willing to do a construction loan for an MHC. So you will have to either have deep pockets or have a group of investors willing to wait 5+ years to see any kind of return (historical lease up periods for new MHCs). At 50 sites your going to need 70%+ occupancy to obtain any type of traditional financing. I can’t say I’m familiar with your market but 200 pads on 130 acres seems extremely low. I know up in your area parks are less dense than ours in FL, but I’d imagine you could at least get 4-6 pads/site. If you don’t develop the entire community but have permitting/approval for significantly more units, your exit strategy will be far better attracting the bigger players to pay a premium for the upside potential. A client of ours recently tore down and rebuilt a small MHC in central FL. There cost for the infrastructure (new sewer/water/electrical/roads) was about $15k/site. This does not include the home, pouring a new pad, clubhouse, amenities, or cost to acquire and demo the existing community. And this is a dense community @ 8-10 units/acre so the roads and lines aren’t running very far, keeping material costs lower. Although it may be feasible and eventually profitable, the cost of capital, time to lease up, and overall economic risk during that period would make this a non-starter for me.