MH Park Cash Flow
I've been looking into mobile home parks and wondered if anyone could stear me in the right direction with some experienced cash flow questions.
What is an average unit rental on a level park?
I recently saw a park for sale @ $300K. It was a 40 unit park with room for 13 more. I figured that the cash flow on this had to be about $100 per unit per month to break even. That's generous even with a high interest rate and nearly 100% financing. Am I wrong in thinking that I could get as much as $250 per month on the land rents and as much as $500 on rental homes not owned by the tenant?
Jeff! Private message me or e-mail me at **Please See My Profile**
I can help.
It all depends on the area. In naples FL I have seen lot rents above 500 and in backwoods Illinois the lot rents are 70. It all depends on the area, community, and the extra's you are offering. You can also raise the rents by offering better service, amenities, etc. And likewise if you need specific help PM me as well.
Good Luck,
Kyle
Do a market survey of all parks in your area. Say in a 30 mile circle. Contact your local MH dealers and let them know that you are looking to buy and see if they have requests from some of their buyers to put homes in a park and not on land. Sometimes they can only afford to purchase the home, but not the land.
When you compare parks, list the amenities.
You can contact your state mobile home association and they will give you good information on owning a park. I developed a 116 unit in FL and found that the association was a great help.
Chuck