CASH, CASH, CASH AND CASH. C Squared x Two = Success.
- Author
- Jason Ramshaw
- Published
- Thu 28 Aug 2025
- Episode Link
- https://podcasters.spotify.com/pod/show/themhprhino/episodes/CASH--CASH--CASH-AND-CASH--C-Squared-x-Two--Success-e37dv62
This episode of "The Four Cs of MHP Investing" breaks down the four essential financial metrics for success in mobile home park investing. The hosts, Barnaby "Barney" Barrows and Ophelia "Rhody" Rhodes, explain how to use these "4 Cs" to evaluate and master any deal.
They cover:
Cap Rate: A measure of a property's profitability, comparing its net income to its purchase price. A higher cap rate is generally more favorable for a buyer, and the hosts advise aiming for a healthy spread above your loan interest rate.
Coverage Ratio: This metric shows a property's ability to cover its debt payments. Lenders typically want to see that the property's income is at least 120% of the mortgage payment, ensuring a safety net.
Cash-on-Cash Return: This is a key metric for investors, calculating the annual return on the initial cash down payment. The hosts emphasize that this includes not just monthly profit but also the value gained from paying down the loan's principal.
Cash Flow: Finally, this is the simple, yet crucial, metric of how much profit is left in your pocket each month after all expenses are paid. The hosts distinguish it from Cash-on-Cash Return and discuss how to improve it after an acquisition.
