Real Estate Investing for Cash Flow with Kevin Bupp #504 How to Efficiently Manage Manufactured Housing Communities
4 snips
Oct 24, 2022 
Steven Blank, founder of Blank Family Communities, shares his journey from maintenance work to managing thousands of manufactured housing sites. He discusses the evolution of the industry and how consolidation has created opportunities for smaller buyers. Steven emphasizes the importance of technology in property management, detailing operational efficiencies and centralization. He also touches on lessons learned from the Great Recession and staffing challenges post-COVID, providing insights on profitable management strategies in today's market.
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Product Upgrade Changed MH Perception
- Manufactured housing has shifted from stigma to mainstream due to product upgrades and institutional interest.
- Older owners with low basis enjoy much higher profitability than recent buyers.
Consolidation Opened Institutional Interest
- Consolidation made manufactured housing a target for institutional capital because the sector remained fragmented.
- Small investors can still find deals but must be realistic about operating complexities and underwriting.
Underwrite Small Parks Realistically
- Avoid using overly aggressive low expense ratios when underwriting small parks; those figures are often unrealistic.
- Adjust expectations for smaller communities' income-expense dynamics before bidding.
