MH Park pricing - Posted by mike south

Posted by JHyre in Ohio on January 25, 2002 at 06:42:00:

You could use per pad price to reverse-engineer your way to Lyal’s answer. At $10k per pad, if you need 12% net return, the thing has to produce a net of $1200 per year, or $100 per month. The real trick is correctly identifying the expenses that get your gross down to that net…hint: pro-formas from owners are near useless in this regard. You have to do lots of due dillegence, particularly if you are dealing with septic tanks, low-end trashy parks, or non-city water (that last one involves the EPA- BIG DOLLARS!). Ray Alcorn’s MH Park course is an excellent value in this regard, as are the posts on the Commercial News Group.

John Hyre

MH Park pricing - Posted by mike south

Posted by mike south on January 24, 2002 at 15:15:57:

looking at parks with $10,000. per pad price. My question is how much does monthly pad rent have to be to make them worthwhile investments.

Re: MH Park pricing - Posted by Rob B

Posted by Rob B on January 24, 2002 at 21:52:36:

Hi, try reading the articles on It is Canadian (so am I), but it has some good articles under related links. It gives ideas on how to value a park and what makes a park a good park. Hope this helps.

Re: MH Park pricing - Posted by lyal

Posted by lyal on January 24, 2002 at 19:10:55:

Income per pad is not really relevant.
See responses further down to “Cap Rate” and “Purchasing a Small Park” for pointers on how to evaluate commercial properties (that’s what mobile parks really are).
All the best, Lyal