Commercial Real Estate Properties, Financial Model, Mobile Home, Real Estate

Cap Rate (Capitalization Rate), Debt Schedule, Debt Service Coverage, Excel, IRR (Internal Rate of Return), Loans, Real Estate Valuation

Built for buyers, brokers and lenders underwriting manufactured housing communities, from 50-pad mom-and-pop parks to institutional-size communities.

Inputs

Pad counts at close: tenant-owned homes (TOH), park-owned homes (POH) and vacant pads
Purchase price, closing costs, infill reserve funded at closing
Lot rent: current rent, market rent and growth, year-1 and ongoing increases (lot rent never exceeds market in any year)
POH home rent premium, utility bill-back, other income, economic vacancy and credit loss
Operating expenses line by line: taxes, insurance, utilities, R&M per pad, POH home repairs, payroll, G&A, management fee, capital reserve per pad
Debt: max LTV, min DSCR, min debt yield, rate, amortization, interest-only years, origination fee
Exit: hold period (1-10 years), exit cap on forward-year NOI, selling costs

Infill program (the main MHC value-add lever)

Homes placed per year on vacant pads, capped at the pads available and stopped after the hold year
Split between homes sold to residents (become tenant-owned) and homes rented (become park-owned)
Home cost and sale price with growth; net cash need funded first from the closing reserve, then from operating cash flow
Unused reserve returned to equity at exit; half-year income convention for homes placed

Outputs

10-year annual cash flow: occupancy, lot rent vs market (loss to lease), lot rent and POH income, utility reimbursement, EGI, expenses and expense ratio, NOI, reserves, debt service, unlevered and levered cash flow, DSCR, debt yield, cash-on-cash
Loan amount with the binding constraint named (LTV / DSCR / Debt yield), implied LTV, year-1 DSCR and debt yield
Sources and uses, price per pad, going-in cap rate
Unlevered and levered IRR, equity multiples, levered profit, average cash-on-cash, minimum DSCR over the hold, exit value per pad
Sensitivity: levered profit and equity multiple across five exit cap rates and five purchase prices, with the loan re-sized per price
Checks block (sources = uses, loan within limits, valid hold, pads reconcile, no negative vacancy, lot rent at or below market, reserve never negative) that must read OK

File: MHC_Acquisition_Infill_Loan_Sizing_Model.xlsx (Excel 2016+, no macros). Recalculated with zero formula errors and tested across ten scenarios (1- and 10-year holds, no interest-only, interest-only longer than the hold, infill larger than vacancy, no reserve, all homes sold, fully occupied at close, LTV-bound and debt-yield-bound loans). Sample inputs are illustrative, not market data. Rent increases are inputs: check state and local rent-increase limits before relying on them. Built with AI assistance and reviewed by Eastwich Advisors. Not investment advice.

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