The Best Investors Don't Chase Deals. They Chase the Right Numbers.
Most new investors fall in love with the property.
Experienced operators fall in love with the numbers.
A property can have new homes, great curb appeal, and a desirable location. But if the fundamentals don't work, it's not a good investment.
Before we make an offer on any mobile home park, we focus on five numbers that tell us whether the business is healthy.
1. Net Operating Income (NOI)
The foundation of every valuation. Strong, consistent NOI creates options and long-term value.
2. Cap Rate
Helps compare opportunities and determine whether the purchase price makes sense relative to the income.
3. Cash-on-Cash Return
Measures how efficiently your invested capital is working from day one.
4. Debt Service Coverage Ratio (DSCR)
A key indicator of financial strength. Healthy cash flow should comfortably cover debt obligations, not just meet them.
5. Equity Multiple
Shows the total value created over the life o...
Suggested Credits
Tags, Events, and Projects