Investment Thesis
America's largest source of affordable housing
Over 22 million Americans live in manufactured housing communities, commonly known as mobile home parks. It is the only large-scale form of unsubsidized affordable housing in the country, and demand is growing as traditional housing costs continue to rise. For investors, MHCs offer a combination of characteristics that are difficult to find in other real estate asset classes.
Lot rents remain a fraction of apartment rents in the same markets, creating room for sustained, responsible rent growth. Because residents own their homes and have significant equity at stake, turnover rates are typically under 5% annually, compared to 40-60% in conventional apartments. Lower turnover means lower operating costs and more predictable cash flow.
New supply is severely constrained. Zoning restrictions and community opposition make it nearly impossible to build new mobile home parks, which means existing manufactured housing communities are an irreplaceable asset with a natural barrier to competition.
Americans in manufactured housing
Annual tenant turnover (vs. 40-60% apartments)
New MHC communities built annually due to zoning
Sample Investment Profile
What $100,000 could look like
The following is a hypothetical illustration, not an actual offering or guarantee of returns. Actual results will vary.
Your Investment
Closing day, Year 0
Targeted Annual Cash Flow
Year 1
Pre-stabilization, early value-add phase
Year 2
Lot rent increases and infill coming online
Year 3
Submetering and occupancy gains
Year 4
Near-stabilized operations
Year 5
Stabilized, exit preparation
Total Distributions (Yrs 1-5)
Year 5 Exit
Return of Capital
Your original investment returned at sale
Sale Proceeds (Your Share)
Profit from property appreciation at exit
Total Return
Distributions + return of capital + sale proceeds
2.0X Equity Multiple
This illustration is for educational purposes only and does not represent an actual or projected investment. Targeted returns are not guaranteed. Actual results will differ materially. Past performance is not indicative of future results. Distributions are targeted, not guaranteed, and may vary.
Our Experience
We operate what we invest in
Requity Group is not a first-time MHC investor. We manage manufactured housing communities (mobile home parks) in our own portfolio and have originated dozens of bridge loans to MHC operators across the Southeast. We know the asset class from the lending side, the ownership side, and the operations side.
This vertical integration gives us an edge in underwriting, due diligence, and execution. When we evaluate an MHC acquisition, we are not relying on pro forma assumptions. We are comparing the opportunity against communities we already run.
FAQ
Manufactured housing questions
A manufactured housing community (MHC) is a property where the operator owns the land and infrastructure (roads, utilities, common areas) and residents either own or rent manufactured homes placed on individual lots. The primary revenue comes from lot rent, which is the fee residents pay for the right to keep their home on the land. This is sometimes called a mobile home park, though modern MHCs are significantly more sophisticated.
Manufactured housing is the largest source of unsubsidized affordable housing in the United States. Average lot rents are a fraction of apartment rents, making MHC the last stop before homelessness for many residents. Demand increases during recessions as people downsize from more expensive housing. Additionally, because residents own their homes and would lose significant equity by moving, tenant turnover is extremely low compared to apartments.
We focus on communities with below-market lot rents, deferred maintenance, vacant lots, and operational inefficiencies. Our value-add strategy includes bringing lot rents to market rates over time, improving infrastructure (roads, water, sewer, electrical), filling vacant lots with new or used homes, submetering utilities to reduce operating expenses, and implementing professional property management. Each of these levers directly increases net operating income.
Our target hold period is 3-5 years, which provides enough time to execute the value-add business plan, stabilize the property, and exit at a valuation that reflects the improved income. We evaluate exit opportunities continuously and will transact when the returns justify it.
Key risks include regulatory changes affecting rent increases or zoning, infrastructure failure (aging water and sewer systems can be expensive to replace), difficulty filling vacant lots in certain markets, environmental liabilities, and concentration risk in affordable housing. We mitigate these through thorough due diligence, conservative underwriting, infrastructure inspections, phase I environmental assessments, and market research before every acquisition.
Important Disclosures: Requity Group LLC is not registered as an investment adviser. Interests in individual syndications are offered under separate offering memoranda pursuant to Regulation D and have not been registered under the Securities Act of 1933. Syndication investments are speculative, illiquid, and involve risk of loss including total loss of capital. Target returns and illustrative economics are not guaranteed. Past performance is not indicative of future results. Consult your tax, legal, and financial advisors before investing.
Requity Group LLC | 401 E Jackson St, Suite 3300 | Tampa, FL 33602