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With a combined 80+ years of real estate industry expertise, PRI leadership has successfully managed a broad portfolio leveraging the team experience, creativity, and vision. From office and industrial to multi-family and commercial properties, PRI Principals have an extensive background and expertise in hands-on management across all major sectors of real estate, including workforce housing and the manufactured housing sector.

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Gregory R. Malin

Troon Pacific & Performance Realty

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Timothy L. Schroeder

Performance Realty

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Whitney Robinson Creutz

Troon Pacific & Performance Realty

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Ella K. Gibbons

Troon Pacific & Performance Realty

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Chan W. Hoo

Troon Pacific & Performance Realty

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… MH Park Investing 101 …

Why Should I Consider
Investing in Manufactured
Homes (a.k.a. – “Mobile
Home Parks” / “MHPs”)?

MHPs present a compelling investment opportunity as a time tested, the recession-resistant asset class that delivers consistent, stable cash flow to investors through all economic cycles.

Why is this?
Three Main Drivers:

Key Metrics Drive Noteworthy Performance:

  • MHPs make up the largest pool of affordable, yet unsubsidized housing in the USA.
  • According to the Manufactured Housing Institute, 22 million residents live in manufactured housing comprising 8.5 million manufactured homes, or less than 10% of America’s housing supply.
  • The average family income for a mobile home household is $34,000.
  • With only 11 percent of low-income households receiving government housing assistance through Section 8 vouchers, mobile homes represent a key source of low-cost housing across America.
  • As a result MHPs tend to perform well during both recessions and economic upswings.
  • Since 2000, the MHC asset class has out-performed other commercial real estate sectors, including multifamily properties.

Therefore, while the U.S. continues to experience rising housing (and apartment) costs, MHPs offer an “affordable” solution. With over 40% of American families earning $50,000 per year or less, inexpensive housing is in even greater demand today than years past.

Negative perceptions have also hurt the supply of MHPs. As stated previously, manufactured housing represents an appropriate answer to the inherent housing shortage, yet it is frequently criticized by other inhabitants and lawmakers who live nearby, misunderstood as an unattractive, even unwelcome eyesore (i.e – “not in my back yard” – NIMBY mentality). As a result, these zoning hurdles and resistant city planning departments have led to higher barriers to entry, thus keeping supply artificially low. Despite this perception, MHPs offer millions of Americans an opportunity to own an affordable home in equal or better locations than many higher priced, smaller apartments or traditional homes.


Historically, MHPs have performed in times of recessions and economic upswings. Over the past two decades, this niche asset has out-performed virtually all other commercial real estate sectors, including even the apartment (multifamily) sector. In 2016 publicly traded manufactured housing REITs returned over 28% vs. just 18% for apartment REITs.

The United States historically benefits from a strong economy, but it does not always experience straight-line growth. The fluctuation of the economy inevitably leads to a recession.

Why should we sleep better at night investing in this MHP niche?

(Hint: we already answered the question… supply and demand.)

The answer is logical: in bad times, when people look to cut costs and expenses (or are forced to do so), a manufactured housing community will be more appealing simply because the rents are significantly less than comparable units within the same market. This helps to continue a steady flow of demand – or even boost demand – for MHPs as a place to reside, not to mention as an appealing and stable investment class.

Simply stated – MHP tenants pay rent on the land their mobile homes occupy. They are incentivized to pay rent on time because not only do they live there, but in the vast majority of the cases, they also own the manufactured home in which they reside. If the MHP tenant does not pay their rent, there is high demand, and the “pad” – the site – is rented to a new tenant. (They also would have to pay $5,000-7,000 on average to move their home off site). Also, as we discussed above, most people own their homes, but not the pads on which they sit.

How could an economic downturn help increase MHP demand?

…because a would-be homeowner may need to reassess their budget as they become more cost-sensitive. Rather than buy a traditional home, or retire in a townhome or condo, the family may realize that a manufactured home still offers an affordable and well-located solution. Also – as we discussed above, most people own their homes, but not the pads on which they sit. The land is rented monthly, which further reduces the upfront, out of pocket expense for a MHP resident.

[According to a report from ApartmentList.com, the average monthly cost to live in a “mobile home” is approximately $564, whereas a similar sized home or apartment costs $1,057.]


Unlike all other asset types in the real estate spectrum, the manufactured and mobile housing sector is the only remaining real estate asset class still primed for consolidation. A case in point, the largest “institutional” owners represent less than 5% of the overall market.

As a consequence, today the majority of MHP communities remain owned and operated by “mom and pops.” As seasoned and experienced owners and operators of residential real estate, Performance Realty is confident we will improve our parks, boost occupancy, and increase rents. These actions result in more satisfied tenants, lower turnover, higher long-term rent potential, and increased values. Lastly, we believe the increased institutional interest in this asset class and more diverse financing options will drive up valuations over the next five to 10 years. This trend is likely to continue as the industry further consolidates.

PRI proactively manages newly acquired parks, rebuilding the infrastructure, cleaning up the appearance, improving efficiencies more sustainably, leading to satisfied tenants with lower turnover. In our opinion, this leads to higher long term rent potential, and higher values.

Lastly, increased institutional interest in the asset class has led to significant cap rate compression (higher prices) and more diverse financing options, which over the next 5-10 years will drive up valuations for MHPs in our estimation. This trend is likely to continue as the industry further consolidates.