Tommy DobczykOpportunity Zone Advisor, OZ Wizard · Director of Development | Certified Opportunity Zone Advisor

Mobile Home Parks: Higher Cash Flow, Lower Expenses Revealed! #shorts

4 Mar 2026 · 1 min

Watch on YouTube

0:58

In this YouTube short, the speaker outlines why mobile home park (MHP) investments can generate superior cash flow compared to multifamily apartments. He explains that their deal models already incorporate rising interest rates, higher cap rates, and construction delays, yet still target roughly 19% internal rate of return (IRR) and 8‑11% cash‑on‑cash returns. A key advantage highlighted is the markedly lower operating expense ratios in MHPs—typically 20‑25% of revenue (worst‑case 20‑40%) versus 40‑60% or more in multifamily properties—resulting in substantially higher net cash flow for investors.

Chapters

These things that we have built in, like interest rates going up, cap rates going up, construction timelines delayed, et cetera, et cetera. All of those things are built in behind our deals where we typically present at about 19% IRRs, sometimes a little above that. And generally we present deals that have about an 8 to 11% cash on cash. And one of the interesting things about the mobile home park space specifically is in multifamily, you might see operating expenses. You've got all your revenue coming in and then you've got your operating expenses. Well, operating expenses are often about 40 to 60%, sometimes even more of revenue in the multifamily apartment space. In the mobile home park space, we're seeing things closer to 20 to 25% across our portfolio. Maybe worst case scenario, we're seeing things from like 20 to 40%. So we've got much lower operating expenses, which means that there's a lot more cash flow in these deals.