Investing in BC mobile home parks
A complete breakdown of mobile home park underwriting, valuation, BC tenancy law, due diligence, financing and the buying process, from offer to close.
What the guide covers
Ten sections, from why parks are worth owning to your first 90 days after closing. Grab a copy for your files.
Why cash flow comes first and appreciation is the cherry on top, and a high level summary of what sets parks apart from other commercial real estate.
Four park types by servicing (city or private well and septic) and home ownership (tenant-owned or mixed), who each one suits, and the overlays that change the picture: land tenure, age restrictions, infill potential, park size, zoning status and utility billing.
The three core return levers of cash flow, debt paydown and appreciation, plus three unique to parks: proportional rent increases, cost recovery for major work, and infill and expansion.
Acquisition risks to verify during due diligence, from infrastructure and zoning to income quality, and the risks that come with ownership, such as electrical upgrades, private services and park-owned homes.
The inputs and return metrics buyers work from, pricing off in-place NOI and a market cap rate with price per pad as a sanity check, and what moves cap rates on a park.
Which tenancy law applies and when, what rent increases are actually permitted, cost recovery for major work, landlord obligations, zoning and legal status, land tenure, why an assignment on sale does not reset rent to market, and park rules.
What the owner or a management company handles, and what an on-site caretaker does day to day.
How lenders size loans on loan-to-value and debt service coverage, an illustrative loan on a park with $150,000 of NOI, and what reduces loan proceeds.
What to verify, and the staggered condition period I aim for when representing buyers: tier 1 conditions over 30 days, tier 2 over 45.
Eight steps, from defining your criteria and budget through offers, the subject period and conveyancing, to the transition and your first 90 days.
Have a deal to talk through?
Whether you are evaluating a specific park, trying to understand what BC cap rates look like in a given region, or just starting to get familiar with the asset class, I am always happy to talk. No obligation, no pitch.