Sarah SullivanFounder and CEO of SuGo Capital

What is investing in mobile home parks?

Name: What is investing in mobile home parks?
Uploaded: 2023-06-03T00:15:44+00:00
Duration: 51 s
Channel: Sarah Sullivan
Description: Sarah Sullivan (speaker) explains a strategy for making ~$100,000/year from investing in mobile home parks: buy an ~80-space occupied park that barely…

3 Jun 2023 · 1 min

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0:51

Sarah Sullivan (speaker) explains a strategy for making ~$100,000/year from investing in mobile home parks: buy an ~80-space occupied park that barely covers the mortgage, then raise lot rents by about $100/month to increase cash flow (estimated ~$100k/year) and thereby increase property value (roughly $1–2M uplift based on cap rates). She notes filling empty lots is a one-time gain, while raising rents is a recurring "golden goose." She gives comparative average lot rents: US average ≈ $300/month, Denver ≈ $900/month.

Questions this video answers

$100 per month per lot

About an 80-space occupied park

About $1 million to $2 million

About $300 per month

About $900 per month

Chapters

I get asked all the time, you know, how could you make 100,000 a year with a mobile home park? Well, you would buy basically any 80 space occupied park you could find that could just barely cover the mortgage, step one, but that you can raise the rents a hundred dollars a month, which in our industry is not, not too difficult. And then you're at 100 grand. And if you're 100 grand of cash flow enhancement, you're in a value enhancement of probably about a million to $2 million based on cap rate. So most of the money in our industry is all based on pushing rents. The other items we do, filling lots, those are one time things. But raise your red seems to be the perpetual golden goose. And the average lot rate in the US on mobile hope parks is only about $300 a month. But yet many of the markets have been worked more aggressively. Like Denver, it's $900 a month.