Fictional sample analysis

Sample MHC underwriting analysis

This sample uses a fictional manufactured housing community (Crescent Pine MHC) to show the kind of underwriting readout CREscope produces from a deal package. It is not a real listing, an appraisal, a market benchmark, or an investment recommendation. Every number is illustrative and describes the fictional deal below.

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The fictional deal

Pads

80

Asking price

$3,250,000

Price per pad

$40,625

In-place NOI

$219,576

Year 1

Crescent Pine MHC is a fictional Texas community. The 80 pads, income, and expenses are made up to illustrate the readout, not drawn from any real property or market.

Valuation (illustrative)

Indicated value

$3,378,092

At a 6.5% cap assumption

Asking price

$3,250,000

Asking-implied cap

6.8%

What the price implies

GRM

8.06

Gross rent multiplier

Direct capitalization at a chosen 6.5% cap assumption. The cap rate is your input, not a market quote. Change it and the indicated value moves with it.

Returns (illustrative, 5-year hold)

Levered IRR

13.2%

75% LTV assumption

Equity multiple

1.80x

Cash-on-cash

3.1%

Yr 1, 4.7% avg

Year-1 DSCR

1.13x

Rises to 1.27x by yr 5

YearNOIDebt serviceCash flowDSCR
1$219,576$194,601$24,9751.13x
2$226,163$194,601$31,5621.16x
3$232,948$194,601$38,3471.20x
4$239,937$194,601$45,3361.23x
5$247,135$194,601$52,5341.27x

What to review

Some of these the readout surfaces automatically from the numbers. The MHC diligence points are standard checks to confirm yourself.

  • Financing to confirm. Year-1 coverage is a thin 1.13x and improves over the hold. Confirm the coverage a lender will actually underwrite to before relying on this structure.
  • Property-tax timing. A cap/reset sunset lands inside the 5-year hold, so tax growth shifts mid-projection. The readout surfaces the year and adjusts the model rather than assuming a flat rate.
  • MHC-specific diligence. For a community like this, confirm pad count and occupancy, whether homes are tenant- or park-owned, and the water/sewer setup (private well and septic vs municipal), because each moves the real numbers.

Run this on your own deal.

Upload a T-12 and rent roll and CREscope builds the same readout from your numbers, in your own assumptions. The first one is free.

Analyze your own deal free

This is a preliminary screening analysis of a fictional property, shown to illustrate the product. It is not an appraisal, broker price opinion, or investment recommendation, and it has not been prepared in accordance with USPAP or any professional valuation standard. The figures are illustrative and are not market data or benchmarks. Verify every number independently before making any investment decision.