All Forum Posts by: RJ Broussard

Hi Corey,  If you listen to any of the BP videos they always talk about what is the investors WHY?  So in reading your post it seems like you want to hold property for the appreciation. I would suggest working the numbers backward and see what solution works. Are you willing to hold if you make $0 in cash flow.  Research what the local rents are and what lot rents are.   You need utilities and who pays and other expenses, taxes, maintenance (MH and land), can you pay for management. In general I usually see estimates for 50% expense if you own the MH and 30% if you just rent the lot.

gross rent - expenses = NOI - debt service = cash flow

napkin calc:

109 sites x .45 occupancy x $265 rent x .7 (assume 30% expense ) x 12 month = $109,185 NOI / cap rate .1 or 10% = $1,091850 value

anyone value empty pads?

Hi Jon,  That seems like a personal question :)  My goal is to leverage my savings to "retire" from my job and bridge the gap until my "full retirement" I don't have a plan on exit. 

The question was intended to be more general. In the southeast the lot rents are low ($225-$280 from what I've seen in my area) so it seems that the max cap rate is from the park owning the MHs (I know this is against the MHP investment "plan").  I guess I'm looking at it like buying a new car, there is a point where the loan balance and the value intersect and that is the prime to to sell or do you hold the car until it dies...  I see abandoned parks in my search every week.

https://www.themhpbroker.com/m...

I thought this was a great thread on valuation

https://www.biggerpockets.com/...

There is tons to read here and videos on MHP investing on Youtube. Mobile home university has a free ebook you might find helpful (https://www.mobilehomeuniversi...) Best of luck

Hi All,

99% of the discussion I read about MHPs is around buying mismanaged parks and forcing appreciation. Is there a strategy for the investor who might want to purchase a stabilized park for cash flow and then maybe sell down the road. As I write this it occurs to me that maybe the answer is you can sell when it looks like the mismanaged part again :) Anyway, I've seen a few small stabilized parks (20 pads or less) for sale in my market that would have a nice COC return but the analysis paralysis of how to get out in 5/10 years keeps me from pursuing. Any thoughts on the subject would be appreciated.

Hi All, newbie seeking opinions or views. I recently came across some land in GA that is an abandoned MHP with 11 spaces. The land has RR tracks on one side which make me doubt trying to reestablish a HMP.  There is water, electricity and septic at each space.   I guess my fear is that there is no scaling it into an RV park, once you have one RVer interested you have a set of fixed costs that are activated (insurance, lawn maintenance, garbage and utilities).  Site is near a growing town with lots of construction ongoing. Thoughts or opinions?