multifamily units & mobile home parks

Would like to know which one (multi family units or mobile home parks) is less hassel & profitable?
In Buying Property - Asked by Komala V. - Jul 8, 2010
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Answer(s)

Tamara N.
Appraiser
Calgary, AB

Komala,
Hassel and profitable are relative. How do you define profitable or hassle? Also, location will be a variable in your search.
Interview several local brokers in the area you are looking to invest and interview them. Questions like stability of community and/or construction of building, age, previous tenants etc. would be in the mix. A good broker will be informed and able to answer your questions during the interview.
Good Luck in your search.
Tamara Nelson
Managing Director/Commercial Real Estate
Strategic Solution Consulting Inc.
Calgary, AB Canada
403.444.6957
tnelson@strategicsolution.ca

Jul 8, 2010
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Brandi L.
Broker/Agent
Oak Brook, IL

As a m-family owner, I would have to say MHP's. At issue is the fact that hassle and profitability are inversely related. Properties which require more time and effort from the owner can bear a higher degree of risk and therefore produce a greater return on investment. I can cite examples from NNN Walgreen's and JPM Chase on one end of the spectrum to vacant buildings in need of repair and re-positioning/development on the opposite end.
Jim Blanchard
Inland Real Estate
jblanchard@inlandgroup.com

Jul 12, 2010
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Samer G.
STERLING HEIGHTS , MI

Mobile Home Parks are Excellent Investments and by far better than multi family units for many reasons. At the same time, they, just like any investment in which you are managing people, will be a hassle if you allow the drama to consume you and if you do not prepare yourself properly for the management task.
With mobile home praks you have essentially all your units in one place per community owned and not scattered all around. So you tell me whats better 100 tax bills or 100 units inside one property and one tax bill?
Profitable is just a matter of purchasing any property at the right price from the onset and then of course with proper management to make sure you are operating the property efficiently. technology should be embraced and understood to help you with efficiency. If you think you going to have accurate records by just keeping track of tenants in a spreadhseet program, then you are kidding your self. You also need to make sure you undertand the $$ required to maintain your property and keep it full. All to often we see investors who buy a property and do absolutely nothing to improve it and this is a major problem.

Jul 15, 2010
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