Mobile Home Parks have High NOI Growth Opportunities

Welcome back to the Passive Mobile Home Park Investing Podcast, hosted by Andrew Keel. This is the last episode in the series where Andrew discussed the 12 reasons why you should be investing in trailer parks. Today Andrew discusses reason #12 as to why you should invest in mobile home parks: mobile home parks are an asset class that offers one of the highest opportunities for net operating income growth (NOI). There are plenty of ways for an operator to raise the NOI of a mobile home park property, which can make the mobile home park property more valuable. Ultimately, this value add component can increase returns when investing in mobile home parks.

***Andrew Keel and Keel Team Real Estate Investments (Keel Team, LLC) do not endorse any
interviewee. This interview is for informational purposes only and should not be depended upon
for investment purposes. ***

Andrew Keel is the owner of Keel Team, LLC, a Top 100 Owner of Manufactured Housing Communities with over 1,300 lots under management. His team currently manages over 20 manufactured housing communities across nine states – AR, IA, IL, IN, MN, NE, OH, PA and TN. His expertise is in turning around under-managed manufactured housing communities by utilizing proven systems to maximize the occupancy while reducing operating costs. He specializes in bringing in homes to fill vacant lots, implementing utility bill back programs, and improving overall management and operating efficiencies, all of which significantly boost the asset value and net operating income of the communities. Andrew has been featured on some of the Top Podcasts in the manufactured housing space, click here to listen to his most recent interviews: https://www.keelteam.com/podcast-links. In order to successfully implement his management strategy Andrew’s team usually moves on location during the first several months of ownership. Find out more about Andrew's story at AndrewKeel.com.

Would you like the pre-investment checklist that I use to review mobile home park deals before I invest in them? We are offering this as a free gift if you go to iTunes and leave a five-star review. To get the pre-investment checklist, leave us a five-star review on iTunes and then send us an email at [email protected]. In the email, please tell us who you are, what screen name you used to leave that review, and we’ll send the pre-investment checklist, directly to your inbox.

Talking Points:

• 00:20 - Welcome back to the Passive Mobile Home Park Investing Podcast
• 00:40 – Reason #12: Mobile home parks have one of the highest opportunities for net
•              operating income growth
• 01:06 - Net Operating Income (or NOI) and how to increase it
• 02:45 - Charles Becker statistics on lot rents
• 03:08 - Frank Rolfe’s opinions on why lot rents are 100% too low
• 04:58 - In conclusion
• 03:27 - The pre-investment checklist

Resources/Links:

Keel Team, official website

Andrew Keel, official website

Andrew Keel, LinkedIn

Facebook page

Instagram page

Twitter: @MHPinvestors

YouTube channel

Quotes:

“Mobile home parks are income properties. Meaning they’re valued based upon the income they produce.” – Andrew Keel

“If an operator can find a way to increase the Net Operating Income of an 8-cap priced mobile home park by just $100 a month, they can add $15,000 to that property’s value.” – Andrew Keel

“Mobile home parks have one of the highest opportunities for net operating income growth and this can potentially provide higher returns for investors.” – Andrew Keel

“Differed maintenance is common and sophisticated, professional investors can squeeze higher profits from these assets somewhat seamlessly.” – Andrew Keel