Real Estate Investing
RV Parks & Mobile Home Parks
150+ Units — The Investor's Playbook
Everything you need to acquire, operate, and profit from large-format manufactured housing communities and RV parks anywhere in the United States.
$44K
Avg. home vs $300K SFH
3–5%
Annual lot rent growth
Asset class overview
🏘️ Mobile Home Parks
- 150+ lot communities
- Tenant-owned homes, you own land
- Extremely low turnover (<10%/yr)
- Recession-resistant demand
- Near-zero new supply nationally
🚐 RV Parks
- 150+ site properties
- Mix of transient & long-term
- Higher income ceiling
- Tourism & lifestyle demand
- Amenity-driven valuation
🔀 Hybrid Communities
- Part MHP, part RV sites
- Flexible revenue model
- Often undermanaged → upside
- Can transition over time
- Broadest deal flow
Why 150+ units? At this scale you justify professional management, unlock institutional financing, and generate enough NOI to service debt comfortably while cash-flowing. Sub-50 parks are owner-operated side hustles. 150+ is a real business.
Asset class analysis
Why MHP & RV Parks Beat Traditional Real Estate
Six structural advantages that make this one of the most durable asset classes in American real estate.
✓ Supply is Permanently Constrained
New mobile home parks are nearly impossible to zone and permit in modern municipalities. NIMBY pressure and local ordinances create a near-monopoly for existing parks. You can't build your way out of this supply problem.
✓ Tenants Own Their Homes
In a tenant-owned home (TOH) model, residents pay for their own home — you collect lot rent. Moving a manufactured home costs $5K–$10K+. This creates sticky tenants with 5–10% annual turnover vs 50%+ in apartments.
✓ Recession Resistant
During 2008 and COVID-19, MHPs outperformed multifamily. Affordable housing demand doesn't evaporate. Economic downturns drive more people into lower-cost living options — your target market grows in recessions.
✓ Massive Value-Add Opportunity
Most 150+ parks still have below-market rents and zero tech adoption. Raising rents $75/mo across 150 lots = $135K/yr extra NOI. At a 7% cap rate that's $1.9M in added value.
✓ Low CapEx vs Apartments
You don't own the homes — tenants do. You own roads, utilities, common areas. No appliance replacements, no interior renovations. CapEx on a well-run TOH park is a fraction of comparable multifamily.
✓ Fragmented Market = Deal Flow
~44,000 MHPs exist in the US; 85% still owned by individuals or small operators. Institutional buyers (Sun Communities, Equity LifeStyle) are consolidating but can't buy everything. The window for private investors is wide open.
Comparison vs other asset classes
| Metric | MHP (150+ lots) | Multifamily (150+ units) | Office | Self-Storage |
|---|
| Typical cap rate | 7–11% | 4.5–6% | 6–8% | 5–7% |
| Tenant turnover | 5–10% | 40–60% | Variable | High |
| CapEx per unit/yr | $200–$500 | $1,500–$3,000 | High | Low |
| Recession risk | Low | Medium | High | Medium |
| Supply growth | Near zero | Medium-High | Medium | High |
| Institutional competition | Growing | High | High | High |
Geographic strategy
Top US Markets for 150+ Unit Acquisitions
Where to find highly leveraged deals and owner-owned properties with value-add upside.
Tier 1 — Best markets right now
🌵 Sun Belt — Arizona, Texas, Florida
High GrowthOwner-Owned Supply
- Phoenix, AZ: Massive population growth, strong lot rent growth, older parks with below-market rents
- San Antonio / Austin TX: Explosive demand, owners sitting on underpriced assets
- Tampa / Lakeland FL: Retirement-age owners ready to sell, RV + MHP hybrid opportunities
- Cap rates: 7–10% achievable with value-add
🏔️ Mountain West — Idaho, Montana, Colorado
EmergingLow Competition
- Boise, ID: Housing affordability crisis driving MHP demand, limited institutional presence
- Billings / Great Falls MT: Energy worker and retiree demand, very few institutional buyers
- Pueblo / Colorado Springs CO: Value-add parks, strong rent growth potential
- Cap rates: 8–12% on off-market deals
🌾 Midwest — Ohio, Indiana, Michigan, Missouri
Cash FlowHighly Leveraged
- Columbus / Dayton OH: Stable economy, large parks at sub-10x GRM
- Indianapolis IN: Nation's best landlord laws, strong tenant demand
- Kansas City MO: Affordable acquisitions, steady cash flow
- Cap rates: 9–13%+ — strongest cash flow in the country
🌊 Pacific Northwest — Oregon, Washington
Limited SupplyHigh Barriers
- Eugene / Medford OR: Huge housing shortage, MHP land extremely valuable
- Spokane WA: Strong workforce demand, undermanaged parks
- RV parks along I-5: Tourism + long-term mix
- Cap rates: 5–8%, but highest appreciation potential
Where to find deals
📬 Direct Mail
- Target owners 65+ (retirement sellers)
- County assessor data → mailing list
- Handwritten or variable-data postcards
- Mail 3× over 6 months
- Conversion: 1–3% respond
🌐 Online Platforms
- LoopNet — largest commercial listing
- MHVillage — MHP-specific marketplace
- RV Park Store — RV-specific listings
- Crexi — growing commercial exchange
- CoStar — institutional grade data
🤝 Broker Network
- Marcus & Millichap MHP division
- Frank Rolfe / Dave Reynolds network
- Local estate attorneys (off-market probate)
- MHP/RV conferences: MHI, NCC, ARVC
- Boutique commercial brokers in target markets
Markets to approach carefully
🚫 California
Extreme rent control (AB 1482 + local laws), tenant protections, and high acquisition prices make it very difficult to force appreciation or raise rents. Land is valuable but cash flow is razor thin. Not recommended for a first acquisition.
🚫 New York / Northeast Cities
Heavy regulation, limited inventory, high prices. Some rural upstate NY parks exist but deal flow is sparse and management is challenging. Better options elsewhere for a new investor.
Deal structure
Deal Types: Leveraged vs Owner-Owned
Understanding the two primary deal scenarios and how to structure each.
Highly leveraged deals
Definition: Properties with existing debt at 65–80%+ LTV, or acquisition strategies using maximum leverage. The goal: control a large asset with minimal equity, maximising cash-on-cash returns while the asset appreciates.
Bridge Loan + Value-Add
- Short-term (2–3 yr) bridge at 70–80% LTV
- Acquire undermanaged park, raise rents
- Refinance into agency debt at higher value
- Typical equity multiple: 2–3× in 3–5 years
- Risk: needs strong operator / management
Agency Debt (Fannie/Freddie)
- Up to 80% LTV on stabilised parks
- 10–30 yr amortisation, competitive rates
- Non-recourse on larger deals ($2M+ loans)
- Requires 90%+ occupancy, good utilities
- Best long-term hold financing available
Seller Financing
- Owner carries 60–80% of purchase price
- Often 5–10% interest, 5–10 yr balloon
- No bank qualifying needed
- Common in mom-and-pop retirement deals
- Combine with equity partners for down payment
Owner-owned / mom-and-pop deals
Definition: Parks owned debt-free or nearly so by original owners — often 60–80+ years old, below-market rents, minimal marketing. The best value-add opportunities in the country.
🏆 The "Sleeping Giant" Opportunity
An owner who bought land in 1978, has 170 lots at $350/mo when market is $700/mo, no mortgage, and wants to retire. They'll often sell at 10–12× in-place NOI because they're priced on current income — but you see the $700/mo potential.
Value calculation:
170 lots × $350/mo = $714K/yr income
50% expenses → $357K NOI → 12× = $4.3M purchase
Raise to $700/mo → $1.43M NOI → 8% cap = $17.9M value 🎯
🤝 Negotiation Tactics with Owners
- Lead with empathy — understand their legacy concern
- Offer installment sale (reduces their tax hit)
- Propose partial equity retention (they stay invested)
- Flexible closing timeline (move on their schedule)
- Avoid institutional feel — be a real person
- Use local attorneys they already trust
- Never insult an offer — counter and educate
Deal size overview
| Size | Units | Typical Price | Financing Path | Min Equity | Strategy |
|---|
| Entry-Level Large | 150–200 lots | $3M–$8M | Local bank / seller finance | $600K–$2M | Value-add, raise rents |
| Mid-Market | 200–350 lots | $8M–$18M | Agency / bridge loan | $1.6M–$4.5M | Value-add + operator |
| Institutional | 350+ lots | $18M–$50M+ | Agency / CMBS / syndication | $4M–$12M+ | Portfolio / LP raise |
Capital stack
Financing Your 150+ Unit Acquisition
From first-time buyer to syndication — every path to fund a large MHP or RV park deal.
Debt options
Agency Debt Best Long-Term
- Fannie Mae / Freddie Mac programs
- 75–80% LTV on stabilised parks
- 25–30 yr amortisation
- Non-recourse (no personal guarantee)
- Rates: Treasury + 1.5–2.5%
- Requires 90%+ occupancy
Bridge / Hard Money Value-Add Phase
- 60–80% LTV, 2–3 yr terms
- Interest-only typical
- Higher rates (8–12%)
- Fast close (15–30 days)
- Exit: refi into agency after stabilising
Seller Financing Best Deal Terms
- Owner carries 50–80% of price
- Negotiated rate (5–8% typical)
- 5–15 yr balloon
- No bank approval needed
- Tax advantage for seller (installment)
Community Banks / Credit Unions
- 65–75% LTV, recourse loans
- 20–25 yr amortisation
- Relationship-based underwriting
- Best for smaller deals ($2–7M)
- Requires 2+ yrs business returns
CMBS
- Non-recourse, fixed-rate
- Deals $5M+ typically
- Rigid prepayment penalties
- Best for long-term "set and forget"
- 10-yr terms common
SBA 504 Loan
- Owner-operator situation
- Up to 90% LTV (10% down!)
- Below-market rates
- Must occupy / operate property
- Max $5M SBA portion
Equity structures
Real Estate Syndication (506(b) / 506(c))
Pool capital from multiple accredited investors. GP/LP split typically 70/30 or 80/20. LPs usually get 6–8% preferred return before splits. Min investment typically $50K–$100K per LP. You need an SEC attorney, PPM, and operating agreement.
Joint Venture (JV)
Partner with 1–3 other investors. Simpler than syndication. Classic split: you bring deal + operations, partner brings equity. Typical split 50/50 to 60/40 (operator gets more). Needs JV agreement and LLC operating agreement.
Sample capital stack — 160-lot MHP at $5M
Agency Debt (75% LTV)$3,750,000
LP Equity (investor capital)$875,000
GP Equity (your own capital)$375,000
With $375K of your own capital and $875K from JV partners, you control a $5M asset, collect 20–30% GP promote on all upside, and earn management fees. If the park doubles in value over 7 years, your $375K becomes $1.5M+ after splits.
Personalised strategy
🌲 Max's Playbook
SF Tree Business → Real Estate Empire
How Max can strategically deploy profits from his tree business in San Francisco into MHP and RV park investing — step by step.
🌲
Max — SF Tree Business Owner
Running a profitable tree service in San Francisco. High-revenue, high-expense trade business with serious profit potential — SF tree work bills are among the highest in the country.
Step 1: Understand the business income landscape
$800K–$3M+
SF Tree Business Annual Revenue
15–25%
Net profit margin (after crew, insurance, equipment)
$120K–$750K
Annual profit available to deploy
The SF advantage: Tree work in San Francisco commands massive premiums — hazardous removal in urban environments, high liability, wealthy homeowners with large trees. Max is sitting on a cash machine. The question is how to make that cash work while he sleeps.
Step 2: Optimise the business structure first
Set Up an S-Corp or C-Corp Structure
Operating as a sole prop or single-member LLC? Move to S-Corp to reduce self-employment tax on profits above a reasonable salary. Max saves $15K–$40K/yr in SE taxes — money that goes directly into the investment fund.
Separate Operating + Investment Entity
Create a separate LLC purely for real estate. Keep tree business income flowing through the operating entity; transfer profits to the investment LLC. This protects assets and simplifies accounting enormously.
Max Out Retirement Accounts
Solo 401(k): up to $69,000/yr in contributions (2024). SEP-IRA: up to 25% of net self-employment income. This reduces taxable income NOW while building a nest egg. Bonus: Self-directed IRA/401k can invest in real estate partnerships.
Track Equipment + Vehicle Depreciation
Tree businesses have huge equipment costs — chippers, cranes, trucks. Section 179 and bonus depreciation can create large paper losses that offset ordinary income. A good CPA will run this to maximise cash available for investing.
Step 3: Define Max's investment criteria
🎯 Target Profile for Max's First Deal
- 150–200 lots / sites (manageable, real scale)
- Midwest or Sun Belt (cash flow + landlord laws)
- Mom-and-pop owned, below-market rents
- Seller open to seller financing or installment sale
- Price range: $3M–$7M
- JV with experienced operator on Deal #1
- Target: 8%+ cash-on-cash in year 2 after value-add
🚫 What Max Should Avoid (at First)
- California parks (rent control, no cash flow)
- Parks with park-owned homes (POH) — CapEx risk
- Active flood zones or environmental issues
- 100% RV transient parks (volatile revenue)
- Solo deal without experienced partner
- Deals requiring $1M+ immediate infrastructure spend
- Bidding wars — wait for motivated sellers
Step 4: Max's savings runway to first deal
Year 1: Build reserve fundTarget: $150K saved
Year 2: Grow investment capital + LP relationshipsTarget: $400K saved
Year 3: Execute first JV dealTarget: Deal Done
On a $5M deal at 75% LTV, Max needs ~$1.25M equity. He brings $350–400K as GP equity, raises $850–900K from 2–3 LP partners. His sweat equity (finding deal, managing acquisition) earns him 20–30% promote on all profits above the preferred return.
Step 5: Use the SF network as a superpower
💼 SF Has Rich LP Investors Everywhere
San Francisco is packed with tech workers, doctors, and lawyers with $100K–$500K sitting in brokerage accounts earning nothing. Max's tree business credibility + a solid MHP deal = natural pitch.
🏡 Local Real Estate Groups
Bay Area REIA and SF real estate investor communities are full of people looking for deals outside California. Max presents a TX or OH deal and he's the most interesting person in the room.
🤝 Accountants & Attorneys Know Capital
Max's CPA and business attorneys have other high-income clients looking for passive investments. A quiet introduction from a trusted professional beats any cold pitch. One dinner can fund a deal.
Step 6: Max's 10-year vision
| Year | Action | Capital | Portfolio Value |
|---|
| 1–2 | Optimise business, save capital, study asset class, build LP relationships | $0 deployed | — |
| 3 | Close first JV deal: 160-lot MHP in Midwest at $5M | $375K GP equity | $5M |
| 4–5 | Stabilise park, raise rents, refi to pull equity out | Cash flowing | $7–8M (revalued) |
| 5–6 | Acquire second deal using refi proceeds + new savings | $500K+ GP equity | $13–15M |
| 7–8 | First syndication with 5–10 LPs, larger deal ($8–12M) | LP raise | $22–28M |
| 9–10 | Portfolio of 3–4 parks, 600+ lots, professional management | $1M+/yr passive income | $30–50M+ |
🌲 The Tree Business Parallel: Max already knows how to run a dangerous, logistics-heavy, labor-intensive business. He understands equipment, crews, client relations, and the value of not cutting corners. That mindset — operational discipline, risk management, long-term thinking — is exactly what makes a great MHP operator. He's not starting from zero. He's translating skills.
Due diligence
What to Check Before You Sign Anything
The complete due diligence checklist for 150+ unit MHP and RV park acquisitions.
Phase 1: Initial screening (before LOI)
Financial Snapshot
- Last 3 years of P&L and tax returns
- Current rent roll (verify against leases)
- Operating expense breakdown (real vs pro-forma)
- Utilities: who pays what (sub-metered vs master)
- Current vs market lot rents
- Delinquency rate (target <5%)
Physical Quick Check
- Drive the park in person — both directions
- Count occupied vs vacant lots
- Condition of roads, utilities, common areas
- Age and condition of park-owned homes (if any)
- Proximity to employment, retail, highways
- Flood zone check (FEMA map)
Phase 2: Full due diligence (after LOI)
Environmental Phase I — Always
Environmental issues (underground tanks, contamination) can kill a deal or cost millions. Phase I is ~$2,000–3,500. Non-negotiable. If Phase I finds red flags, Phase II ($10K–$50K) samples soil/water. Walk away from anything with active contamination.
Utility Infrastructure Inspection
The #1 hidden risk in MHP deals. Hire a licensed plumber to camera the sewer lines and an electrician to inspect electrical infrastructure. Old cast iron or orangeburg sewer = potentially $500K–$2M replacement. Public utilities > private systems.
Title Search & Survey
Full ALTA survey required on deals of this size. Check for encroachments, easements, right-of-way issues. Verify all lots are within legal property lines — many parks have ambiguous boundaries from 1960s-era plats.
Lease Audit
Pull and review every single lease. Check for terms that limit rent increases, inherited obligations, or grandfathered rates. Some older leases have provisions you'd never accept today — know exactly what you're buying.
Zoning & Permit Verification
Confirm the park is properly zoned with legal non-conforming status if applicable. Verify recent improvements were permitted. Ask about pending variances or municipal concerns. Municipalities wanting to redevelop the land are a deal-killer.
Market Rent Study
Know what comparable lots rent for within 20 miles. Call competing parks posing as a prospective resident. Check MHVillage, Apartments.com, local Facebook groups. Your value-add thesis depends entirely on this number being right.
Red flags that kill deals
Infrastructure
- Private well / septic (not public utilities)
- Orangeburg or clay sewer pipes
- Aging electrical pedestals (pre-1990)
- No sub-metering on water/electric
- Active FEMA flood claims history
Financial
- Revenue numbers don't match bank statements
- High % park-owned homes (your CapEx)
- Delinquency >10% of lots
- Expenses look unusually low
- No operating history / new ownership
Legal / Zoning
- Outstanding code violations
- Pending condemnation proceedings
- Tenant organisation / unionisation activity
- Litigation from current/former tenants
- Non-conforming zoning with no grandfather
Operations
Running a 150+ Unit Park Profitably
Operations strategy, management structure, and key performance metrics.
Management options
Self-Managed + On-Site Manager
- Hire on-site manager (reduced lot rent + small salary)
- You handle leasing, maintenance, financials
- Best margins but most time-intensive
- Works well within 4-hr drive of your home base
Third-Party Property Manager
- Specialists: Storey Park Management, Havenpark, RHP Properties
- Cost: 5–10% of gross revenue
- Handles day-to-day, you handle strategy
- Essential for out-of-state deals
Vertically Integrated Operator
- Build your own management company over time
- Manage your parks + others' for fee income
- Requires 2+ parks to justify overhead
- Max's 5–10 year play
Value-add execution playbook
Month 1–3: Stabilise & Assess
Meet every resident. Don't raise rents yet. Fix what's broken. Establish goodwill. Clean up entrance and common areas (cheap, huge visual impact). Interview on-site manager — keep if good, replace if not. Get accounting in order.
Month 3–6: Implement Systems
Launch online rent payment (most residents will switch). Implement utility billing back if not in place. Issue lease renewals with updated terms. Address delinquent accounts systematically but not harshly.
Month 6–18: Rent Escalation
Begin phased rent increases to market — typically $25–$50/lot every 6 months until at market. Give proper notice per state law. Expect 1–3% turnover from increases; it's healthy. Backfill vacants aggressively.
Year 2+: Expand Revenue
Charge for additional vehicles, sheds, storage units. Add amenities (dog park, fire pit, playground) that justify higher rents. Convert any POH lots to TOH. Fill vacant lots by partnering with manufactured home dealers.
KPIs to track monthly
95%+
Target occupancy rate
45–55%
Expense ratio target
Exit planning
How to Monetise Your Investment
From cash-flow holds to institutional exits — every path to capturing your equity.
♾️ Hold & Cash Flow
Hold the park indefinitely, raise rents with inflation, let the mortgage pay down. Generate $150K–$500K/yr passive income depending on scale. Perfect for retirement income. Pass it to heirs with a stepped-up basis.
🔄 Cash-Out Refinance
After stabilising and forcing appreciation, refinance at the new (higher) value. Pull out equity tax-free. Redeploy into the next acquisition. This is the BRRRR strategy applied to commercial real estate.
📦 Portfolio Sale
Institutional buyers (Sun Communities, Equity LifeStyle) pay portfolio premiums for multiple parks. Build 3–5 parks in the same region and an institutional buyer may pay 15–20% above individual-asset pricing.
📊 1031 Exchange
Sell and reinvest proceeds into a larger property tax-deferred. No capital gains tax at sale if you roll full proceeds into a like-kind property within 180 days. Upgrade from a $5M park to a $15M park without a massive tax hit.
🏦 DST / UPREIT
Contribute your park to a Delaware Statutory Trust or UPREIT (typically to a REIT). Receive OP units instead of cash — defers taxes while converting illiquid real estate into a more liquid holding.
🎁 Estate / Legacy
MHPs are excellent estate planning assets. Real property passes with stepped-up basis at death, eliminating embedded capital gains. Place parks in a family limited partnership or dynasty trust to pass wealth efficiently.
Advanced reference
Deep Dive: Tax, Legal, Underwriting & More
Jump to any sub-topic using the links below.
🧾 Tax & Legal Structure
The core principle: Real estate is one of the last legal tax shelters in the US tax code. A well-structured MHP acquisition can generate paper losses that offset W-2 or self-employment income (like Max's tree business), while the property simultaneously appreciates and cash-flows.
LLC → S-Corp Combo
Best for Max. Tree business as S-Corp — pay yourself reasonable salary, rest is distributions avoiding 15.3% SE tax. Each real estate deal in its own LLC, owned by a holding LLC. Losses flow to Max's personal 1040.
LP Structure (Syndication)
When raising from multiple investors, use a GP LLC (you) and LP LLC (investors). LP investors get passive losses — usable against other passive income. Requires SEC attorney + PPM under Reg D 506(b) or 506(c).
Delaware Statutory Trust
Advanced exit play. Contribute appreciated property into a DST, receive fractional beneficial interest. Useful for 1031 exchange parking and estate planning. Typically used by operators with $5M+ of embedded gains.
Depreciation — your best friend
Standard Depreciation
- Commercial real property: 39-year straight-line
- Land improvements (roads, utilities): 15-year
- Personal property in park: 5–7 year
- On a $5M park: ~$85K–$120K/yr in depreciation deductions
- This shelters cash flow from income tax — you cash flow but show a paper loss
Cost Segregation Study
- Engineer reclassifies components into shorter lives
- Accelerates $300K–$800K of deductions into Year 1 on a $5M park
- Cost: $8K–$20K for the study — easily worth it
- Combined with bonus depreciation = massive Year 1 loss
- For Max: This loss could eliminate $200K+ in federal tax in Year 1
Opportunity Zones
- Invest capital gains into a Qualified Opportunity Fund
- Defer capital gains tax
- Hold 10+ years → appreciation in the QOF is 100% tax-free
- Many MHP and RV park deals are in OZ-designated tracts
- Check: opportunityzones.hud.gov
Real Estate Professional Status (REPS)
- 750+ hrs/yr on real estate AND it's your primary activity
- Unlocks unlimited passive loss deduction against ANY income
- As tree business scales to managers, Max's time shifts → REPS possible
- Requires meticulous time logs — keep contemporaneous records
- Game-changer: cost seg losses wipe out $500K+ of business income legally
📐 Underwriting & Pro Forma
Golden rule: Always underwrite to in-place numbers first, then model value-add separately. Never pay for potential you haven't yet created. The seller's pro-forma is marketing material.
Worked example — 160-lot MHP in Columbus, OH
| Line Item | In-Place (Year 0) | Stabilised (Year 2) | Notes |
|---|
| Gross Potential Rent | $806,400 | $1,344,000 | 160 lots × $420/mo → $700/mo at market |
| Vacancy & Credit Loss (5%) | ($40,320) | ($67,200) | Conservative at 5% |
| Other Income (storage, fees) | $12,000 | $28,800 | Storage units, late fees, pet fees |
| Effective Gross Income | $778,080 | $1,305,600 | |
| Property Taxes | ($45,000) | ($55,000) | Will increase after reassessment |
| Insurance | ($18,000) | ($22,000) | General liability + property |
| Utilities (common area) | ($24,000) | ($20,000) | Reduce with sub-metering |
| Management Fee (8%) | ($62,246) | ($104,448) | 8% of EGI |
| Maintenance & Repairs | ($35,000) | ($28,000) | Deferred maintenance front-loaded |
| Admin / Accounting / Legal | ($18,000) | ($18,000) | |
| Reserves (CapEx) | ($24,000) | ($24,000) | $150/lot/yr |
| Net Operating Income | $551,834 | $1,034,152 | |
| Purchase Price (9% cap) | $6,131,489 | — | Negotiated at ~$6.1M |
| Stabilised Value (at 7% cap) | — | $14,773,600 | Value nearly 2.4× purchase |
| Agency Debt (75% LTV) | $4,598,617 | — | 30-yr am, ~6.5% rate |
| Annual Debt Service | ($349,000) | ($349,000) | ~$29K/mo P&I |
| Cash Flow After Debt | $202,834 | $685,152 | |
| Cash-on-Cash (on $1.5M equity) | 13.5% | 45.7% | After value-add fully realised |
$14.8M
Stabilised Value (Yr 2)
Key Metrics to Calculate
- Cap Rate: NOI ÷ Purchase Price (buy at 8%+, exit at 6–7%)
- Cash-on-Cash: Annual Cash Flow ÷ Total Equity Invested
- DSCR: NOI ÷ Annual Debt Service (lenders want 1.25×+)
- GRM: Price ÷ Gross Annual Rent (under 8× is interesting)
- IRR: Internal rate of return (target 15–25%+)
Underwriting Rules of Thumb
- Use 50% expense ratio if you can't verify actuals
- Stress-test at +1% interest rate — does it still work?
- Model 10% vacancy even if current is 3%
- Add $200K–$500K deferred maintenance buffer on older parks
- Include 6 months interest reserve in your budget
- Never underwrite rent bumps to pro-forma in Year 1
🏦 MHP & RV Park Lenders — Actual Names
Not all commercial lenders know this asset class. Go directly to lenders with a proven MHP/RV track record — they underwrite faster and won't kill your deal over unfamiliarity.
| Lender | Type | Min Loan | Max LTV | Speciality | Notes |
|---|
| Bellwether Enterprise | Agency / Life Co | $2M | 80% | MHP Agency, non-recourse | Fannie/Freddie MHP leader |
| Greystone | Agency | $2M | 80% | Fannie Mae MHP loans | Very active, national |
| Berkadia | Agency / CMBS | $5M | 75% | Large MHP portfolio deals | Top-5 agency MHP lender |
| Newmark | Agency / Bridge | $3M | 78% | MHP + RV park balance sheet | Strong bridge-to-agency pipeline |
| Ready Capital | Bridge | $1M | 80% | Value-add bridge, MHP | Fast close, transitional deals |
| Arbor Realty Trust | Agency / Bridge | $2M | 80% | Fannie/Freddie, manufactured housing | Aggressive on MHP |
| National Western Financial | Life Company | $3M | 65% | Stabilised MHP, long-term holds | Very competitive rates, slow process |
| Clopton Capital | Correspondent | $1M | 75% | Nationwide, MHP + RV parks | Good broker for smaller deals |
| Pacific Premier Bank | Community Bank | $500K | 70% | Western US, MHP / RV | Relationship-based, recourse |
| SBA (via local SBA lenders) | SBA 504 | $500K | 90% | Owner-operator parks | 10% down; must operate park |
Tip: For deals under $5M, start with SBA 504 (if owner-operating) or a local community bank. For $5M+, go agency via a correspondent like Bellwether or Greystone. Always get 3 term sheets — even a 25bps rate difference on a $5M loan saves $12,500/year.
🔎 Deal Sourcing — The Full Playbook
📬 Direct Mail — Step by Step
- Step 1: Pull county assessor data (PropStream / BatchLeads) for target market
- Step 2: Filter for MHP / RV / mobile home land use code, 10+ acres
- Step 3: Cross-reference owner age data — target 60+ owners
- Step 4: Send handwritten postcards: "I'm looking to purchase a park in [county]. If you're ever considering selling, I'd love a conversation."
- Step 5: Mail 3× over 6 months
- Conversion rate: 0.5–2% respond; 1 in 10 responses leads to a deal
📞 Cold Calling
- Find number: County records → skip trace via REISkip ($0.15–0.25/record)
- Opening: "Hi, I invest in manufactured home communities. I noticed you own [Park Name] — I'd love to introduce myself if you're open to it."
- Don't pitch price immediately — build rapport first
- Key question: "What would need to be true for you to consider a transition?"
- Follow-up every 60–90 days if not ready
- Track in CRM: Notion, Airtable, or HubSpot free tier
🌐 Online Platforms
- LoopNet.com — filter: Mobile Home Park
- MHVillage.com — MHP-specific
- RVParkStore.com — RV-specific
- Crexi.com — fast-growing exchange
- CoStar.com — institutional data ($$$)
- Facebook Marketplace — seriously, mom-and-pops list here
🤝 Broker Network
- Marcus & Millichap — MHP National Group
- CBRE — institutional MHP/MF
- Cushman & Wakefield — large portfolio deals
- SVN International — active in smaller markets
- Local boutique brokers — often have off-market pocket listings
🏆 Skip Tracing Tools
- BatchSkipTracing — bulk, cheap ($0.12/record)
- REISkip — investor-focused
- PropStream — data + skip trace + mailing
- TLO / LexisNexis — institutional grade
Conferences & events — where deals actually happen
🏙️ MHI Annual Conference
Manufactured Housing Institute. Largest industry event. Operators, lenders, vendors, and investors. Las Vegas, typically October/November.
🚐 ARVC National Conference
National Association of RV Parks & Campgrounds. Best event for RV park operators and investors. Nashville area, typically November.
📚 MHP University Boot Camp
Frank Rolfe & Dave Reynolds. 3-day intensive. Mix of education and deal sourcing networking. Runs 2–3× per year nationally.
📜 LOI & Legal Documents
The LOI (Letter of Intent) is a non-binding term sheet that kicks off the formal process. Get it right and you set the tone for the entire negotiation.
✅ Must-Have LOI Terms
- Purchase Price: Exact number (or range tied to NOI verification)
- Earnest Money Deposit: 1–2% of price, refundable during DD
- Due Diligence Period: 45–90 days (negotiate 60 minimum)
- Closing Timeline: 30–45 days after DD expiration
- Financing Contingency: Deal dies if financing falls through
- Inspection Contingency: Right to walk for any reason during DD
- Seller Representations: No pending litigation, accurate rent roll
🤝 Seller-Friendly Additions
- Exclusivity Period: Seller agrees not to market to others during your DD
- Installment Sale Option: Payments over time (tax benefit for them)
- Consulting Agreement: Pay seller $3K–$5K/mo post-close (knowledge transfer)
- Right of First Refusal: On any adjacent parcels they own
- Name Continuity: Keep the park name if it has community goodwill
Key PSA terms to negotiate
| Term | What to Push For | Why It Matters |
|---|
| DD Period | 60–90 days minimum | You need time for environmental, utility inspection, lease audit |
| EMD Refund | Fully refundable until DD expiry | Protects you if deal falls apart on inspection |
| Rent Roll Warranty | Seller warrants accuracy of rent roll as of closing | If occupancy drops before close, you can renegotiate |
| Title Insurance | ALTA extended coverage | Protects against survey exceptions and off-record issues |
| Deferred Maintenance Credit | Dollar-for-dollar credit for items found in DD | Negotiating power after inspection findings |
| Representations Survival | 18–24 months post-close | Seller liable if misrepresentations discovered later |
⚖️ Real Estate Attorney
Specialist in commercial RE, ideally MHP experience. Reviews PSA, operating agreements, title. Budget $5K–$15K. Find via state bar referral or MHI member directory.
🧾 CPA / Tax Advisor
Must have RE investor clients. Structures entity, advises on cost seg timing. Budget $3K–$8K first year.
🏦 Mortgage Broker
Use a correspondent who does MHP-specific agency debt. They shop your deal to Fannie/Freddie/life cos simultaneously. Fee: 0.5–1% of loan.
📊 Case Study: Max's First Deal
Hypothetical but realistic based on actual deal archetypes in the Midwest. Numbers represent 2024–2025 market conditions.
Sundown Acres MHP
Deal Name
The Story
Bob, 74, has owned Sundown Acres since 1981. He bought 40 acres outside Dayton for $180K and built it into a 162-lot community. His mortgage has been paid off since 2009. He charges $390/mo per lot — market rate is $660. He runs it himself with his wife, has no property management software, and accepts checks mailed to a PO box. Max hears about Bob through a direct mail postcard sent 8 months ago. Bob called, they talked for an hour. Max flew to Dayton, drove the park, had coffee with Bob. Three meetings later, Bob agrees to sell for $5.4M — $700K down and seller financing for $1.2M at 6% over 7 years, with the balance from a bank.
Capital stack
| Source | Amount | % of Deal | Terms |
|---|
| Community Bank Debt | $3,500,000 | 64.8% | 6.75%, 25-yr am, 5-yr balloon, recourse |
| Seller Carry (Bob) | $1,200,000 | 22.2% | 6%, 7-yr term, interest only |
| Max (GP equity) | $350,000 | 6.5% | Tree business savings + business line of credit |
| JV Partner (LP) | $350,000 | 6.5% | 8% preferred return, 60/40 split after pref |
| Total | $5,400,000 | 100% | |
Value-add timeline
Month 1–2: Onboard & Stabilise
Hire local on-site manager. Implement Rent Manager software. Convert all residents to ACH/online payment. Minor deferred maintenance addressed ($28K). Public sewer and water confirmed. Build relationship with residents.
Month 3–6: Raise Rents Phase 1
Issue 60-day notice of $50/mo increase ($390 → $440). Ohio law requires 30-day notice; Max does 60 to be generous. Turnover: 4 residents (2.5%). All 4 lots re-leased within 6 weeks at $480/mo.
Month 9–12: Infrastructure + Phase 2 Rent
Install RUBS (Ratio Utility Billing System) — shifts water/electric common area costs to residents. Adds $35/mo average legally. Second rent increase to $530/mo. Repave main entrance road ($45K) — huge visual upgrade.
Year 2: Reach Market Rents
Final increase to $620/mo. NOI reaches $820K. Engage Bellwether for agency refi at new value. Park appraises at $11.7M. Refi to $8.8M agency loan, pull out $5.3M equity. Max's $350K became $2.65M in cash (7.5× in 24 months) + he still owns the park.
7.5×
Max's equity multiple (24 months)
$2.65M
Cash pulled from refi
$685K/yr
Ongoing cash flow post-refi
⚖️ State Laws — MHP Landlord Rankings
Mobile home park tenancy law is completely separate from standard landlord-tenant law in most states. Many states have specific "Manufactured Home Tenancy Acts" that control notice periods, rent increase rules, and eviction procedures. Know them before you buy.
| State | Landlord Rating | Rent Control? | Notice to Vacate | Rent Increase Notice | Notes |
|---|
| Indiana | ★★★★★ Excellent | No | 30 days | 30 days | Best landlord state in US. No local rent control allowed. |
| Texas | ★★★★★ Excellent | No | 30 days | 30 days | Landlord-friendly, preempts local ordinances. |
| Ohio | ★★★★ Very Good | No | 30 days | 30 days | Clear MHP Act, fast courts, no rent control. |
| Florida | ★★★★ Very Good | No (state preempts) | 45 days | 90 days | Longer notice but no rent control. Huge retiree market. |
| Arizona | ★★★★ Very Good | No | 30 days | 30 days | Landlord-friendly, fast eviction, booming market. |
| Missouri | ★★★★ Good | No | 30 days | 60 days | Strong deal flow, solid laws. |
| Colorado | ★★★ Moderate | Local only (Denver) | 91 days | 91 days | 2022 law extended notice requirements significantly. |
| Washington | ★★ Challenging | Some local (Seattle) | 90–180 days | 3 months | HB 1035 (2023) extended relocation requirements. |
| Oregon | ★★ Challenging | Yes (statewide 7%+CPI) | 365 days (large parks) | 90 days | One of the toughest MHP tenant-protection regimes in the US. |
| New Jersey | ★ Very Difficult | Yes (many localities) | 18 months | Varies | Extreme tenant protections. Near-impossible to close a park. Avoid. |
| California | ★ Very Difficult | Yes (AB 1482 + local) | 12 months | 90 days + CPI cap | Near-impossible to raise rents meaningfully. Avoid for cash flow. |
✅ Top 5 Landlord-Friendly States
- Indiana — clear laws, fast courts, zero rent control at any level
- Texas — massive market, landlord preemption prevents local rent control
- Ohio — solid MHP Act, reasonable courts, affordable acquisitions
- Arizona — fast growth, clear statutes, good court system
- Florida — longer notice but huge demand, no statewide rent control
🚫 States to Approach with Extreme Caution
- California — rent caps, relocation requirements, 12-month closure notice
- New Jersey — 18-month closure notice, extreme tenant protections
- Oregon — statewide rent control, 12-month notice for large parks
- Washington — rapidly tightening since 2023 legislation
- Connecticut / Rhode Island — small markets, heavy regulation, slow courts