KEY BENEFITS:
Affordable Housing Demand: Persistent, growing market need.
Long-Term Tenants: High retention, stable occupancy.
Low Operating Costs: Less maintenance per unit.
Limited New Supply: Restricted development, less competition.
Recession Resilience: Stable demand in downturns.
Asset: Poorly managed and underutilized property in a rapidly gentrifying urban infill location
Strategy: Infill | Hold Period: 3-5 yrs.
Projected Net Returns:
IRR: 20–25%
Equity Multiple: 2.8–3.5x
Preferred Return: 9-12%
Asset: Mid-sized (150 pads) in a growing secondary market outside a large mid-west city
Strategy: Value Add | Hold Period: 5-7 yrs.
Projected Net Returns:
IRR: 15–19%
Equity Multiple: 2.2–2.8x
Preferred Return: 7.5 - 9%
Asset: Well established, professionally managed, in a high demand coastal retirement community
Strategy: Core | Hold Period: 10 yrs.
Projected Net Returns:
IRR: 8–10%
Equity Multiple: 1.8–2.1x
Preferred Return: 6 - 7%
Risk
Mitigation Strategy
Perception/Stigma
Educate prospective tenants about how things have evolved in the MHP space.
Local Regulations
We invest in landlord-friendly states and thoroughly vet local legislation before entering a market.
Management
We thoroughly vet the management and operation systems, ensuring tenant satisfaction and max efficiency.
Sponsors budget 5–10% annual escalators and secure multi-year insurance policies.