All Forum Posts by: Nora Santana

thanks Rachel H. and Daniel Smithson, I have decided not to go ahead with the purchase due to the tiny lots (12x40) of the MHP, which are difficult to infill, more transient renters and would be difficult to convert to TOH.

hello, has anybody run into this scenario before: I am doing due diligence on a grandfathered-in MHP in a city that does not allow MHP anymore.  it's a MHP built in 1977.  I tried to ask the city zoning to see if there is any restriction with replacing the older MHs with newer models and to infill vacant lots, but did not receive any conclusive answer from them. My question is: is this MHP worth pursuing ..?  If it is, is there any 'security' letter I can get from the city to make sure they wouldn't cite the park with non-compliance in the future..?

thanks in advance for helping.

hi Pete, park value is calculated by taking NOI/cap rate, just from your numbers above it looks like the cap rate is about 14% ($38k NOI/$275k asking price). The reason for the higher cap rate is due to the nature of RV Park, more transient tenants, if you want more permanent tenants-consider bringing in RV park model that you can convert to tenant-owned model similar to MHP. if you could bring down cap rate and increase NOI by infilling empty lot etc, you'd force appreciation to the park.

hope that helps, that's just my 2c.

wow, that's very detailed response Jack, you gave me a lot of things to mull over, thank you very much.

hello, newbie question: I am evaluating a park with about 40 pads and have question about park manager, currently the park has no onsite manager (managed directly by owner). What is the drawback to hire regular SFR property management (instead of onsite) to manage the park, and pay them a % of lot rent (all TOH homes in park)..? i'd assume not having as tight of control as somebody who actually live in the park is one of them. Appreciate any thoughts on this.

thank you.

hi Ryan, I am also a new investor in similar situation as yours, looking to purchase a smaller MHP with option to convert POH to TOH.  My thinking is to partner with a few local mobile home investors, basically give them the MHs for free, they will then be responsible for fixing it and renting it out and pay you lot rent only.  i think that will create win-win for everyone.  any thought from other experts..? and yes, thank you Frank Rolfe, i have been reading your articles as well, appreciate your contribution and education of affordable housing with MHPs.