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.