Underwrite a mobile home park in the time it takes to walk it.
This is a sample deal — clear it and enter your own park's numbers.
Verdict · Sample Park MHP
PURSUE
At $1,000,000, this clears all three of your targets — a 9.9% cap, 14.4% cash-on-cash, and 1.56x DSCR. The numbers support the ask; your work now is verifying they're real (trailing-12 expenses, rent roll, utility bills) rather than talking price. This is a preliminary read — 10 inputs are still estimates, so the offer is a range ($913,989–$1,128,794). Verify them to collapse it to one number.
Preliminary — based on 10 estimated inputs
Input confidence
R&M looks low for a park this size.
No owner-paid utilities entered — confirm who pays water/sewer/trash.
Expense ratio looks low for a park-owned-home park — double-check your numbers.
10 of 10 key inputs still marked estimate · the offer stays a range until they're verified.
Risk flags
▲Expense ratio under 25% almost always means the seller's numbers are incomplete. Re-underwrite on real trailing-12 expenses, not a pro forma.
▲Modeled expenses of $29,967 (23.1% of EGI) fall below the realistic floor of $58,255 (45%) for a park with park-owned homes. Treat the NOI as optimistic until trailing-12 expenses prove otherwise.
The read
At $1,000,000, this clears all three of your targets — a 9.9% cap, 14.4% cash-on-cash, and 1.56x DSCR. The numbers support the ask; your work now is verifying they're real (trailing-12 expenses, rent roll, utility bills) rather than talking price. This is a preliminary read — 10 inputs are still estimates, so the offer is a range ($913,989–$1,128,794). Verify them to collapse it to one number.
Sample Park MHP (Anytown, USA): 40 lots, 80% occupied. NOI ~$99,489 on ~$129,456 EGI (23.1% expense ratio). At a 1.25x DSCR these operations support roughly $938,423 of debt at current terms.
40 lots · $139,200 in-place income