All Forum Posts by: Edward Romero
Edward Romero has started 2 posts and replied 2 times.
Post: What’s the typical expense ratio for MHP were all units are TOH
- Posts 2
- Votes 1
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.
Post: MHP refusing share more than one year income statements/rent roll before giving LOI
- Posts 2
- Votes 1
I am looking to buy a mobile home park and ran into an interesting situation. The disclosure of the property released 1 year rent roll and income statement but the expenses seem a bit low. I asked for 2 more years of income statement or rent roll so that I can finalize my analysis but seller is giving me the run around. I am trying to figure out if my request is unreasonable prior to giving an LOI or whether this could be a fishy sale that I should drop. Thank you very much in advance
Some stats on why I think expenses are a red flag
25 % expenses of the gross income
3% on Repairs & Maintenance of the gross income
The repairs and maintenance seem really low since the park owns more than 50% of the homes