Two developers debate converting a California mobile-home park to tiny homes or multifamily housing. Construction costs run $150k-$250k per unit, with finished homes priced around $500k. The 173-site park generates $2.96M annually in lot rent.
Are you in the deal room?
Single family? Yeah. Still? Because they're tiny homes.
Well, because it's a lot of multifamily because you have multiple units on one lot, right? If it's single family, it's single family dwellings on individual lot.
But maybe LA County would be extremely open to having single homes and say each one. But then you have to develop all these homes, which costs a lot.
To that point, we can do luxury tiny homes. We can do 400, 800 square foot 2 stories, 400 one-story, 800 two-story homes, and we can do those there no problem. But clearing all that out and, and retrofitting that park to hold 173 houses, yeah, we'd have to sell them for at minimum $500,000 a lot with the house on it.
What about like high-end, like a condo or duplex?
But that's a rezoning to multi-family if it currently has an RV. Okay. Mobile home park zoning to stay in that parameter, we'd have to come in with 173 tiny homes times $150,000. So we could do the luxury tiny homes here, but based on what it's saying, we'd have to sell them at— so if we built 173 custom tiny homes ranging from $150,000 to $250,000 total cost, and then we want to have a 30% markup to that, add that to the lot price and tell us how much we would need to sell each one for and then how much we would need to charge lot rent to maintain the entire park.
Okay, so it says right there, low-end price of the home site is $541,000, high-end is $671,000. So the lot rent you would need, simple lot formula, 173 sites times 12. So earth site, $2,964,000. Fun to take away.
Okay, so we want to look at mobile home parks all the way up and down the California coast. Pull me all of the comps from any mobile home park right on the beach, right on A1A or whatever. And I want to know exactly how much they're getting for lot rent. I want to know how many units they have in their park, and I want to know an estimated value of the park. And I want to know how— what age their units are. Ready to go.
So I hope you guys are getting like why we're continuing to have this conversation, because the more we talk to Deal Hunter, it's giving us different ideas of how we could actually, like, make this actually work, right?
