Podcast Episode #6: The State of the MHP Economy

 

 

 

When making the decision to invest in a mobile home park (MHP) one of the essential things to look at is the market. Now isn’t always the best time to invest, and there are certain markers you can use to evaluate whether you should wait a little while for an economic shift before purchasing your first MHP.

 

Overall economic check in

Checking with the economy as a whole is a good place to start. Are we in a recession or is one predicted to come soon? In all markets, whether times are good or bad, people are making money. The trick is to find the right deals when you’re ready to invest. In a “bad” market, they’ll be harder to locate. There also may be different types of parks that are good deals now, but bad deals later. Factors like location, proximity to competition and more impact the value of a park and affect in what markets it’s going to be a good buy.

 

Investment length review

Another thing to consider is the length of your investment. While some people just buy a park to turn around and sell it the next year, many investors get into MHP ownership for the long haul. This could lead to holding onto the park for five years or more which means preparing to sell in a completely different economy than when you bought. Looking ahead and making educated guesses on where things are going can help you map out a plan for the ideal length of your investment, putting you on the lookout at the right time to make a profitable sale.

 

Flexibility reminder

You also have to be flexible as a MHP owner. If you want to sell, but it’s not a great time, can you afford to hold onto your park? If it’s bringing in enough income to make it manageable to keep, be flexible enough to shift your plans back six months or a year. Continue making money from the park, all while being ready to sell once the market shifts in your favor.

To learn more about the MHP economy and when to consider selling, listen to Glenn Esterson and Jason Sirotin get into the details of MHP ownership on the MHP Expert Podcast.

 

Podcast Transcript

Jason Sirotin: Hey everybody. Welcome to the Mobile Home Expert Podcast. I’m Jason Sirotin, here with mobile home park expert Glenn Esterson. Glenn, how the hell are you?

Glenn Esterson: I’m doing excellent, my friend. I hope you are too.

Jason Sirotin: I’m doing great. So we’re going to be talking today, we’re going back to one of the chapters in your book, it’s chapter five, and it’s called the MHP Economy, and what we’re going to look into today is, and this is really great for me, especially because Glenn just informed me before we started the show, that there’s a really good deal right in the town where I live in.

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