Rhino methodology
How Rhino underwrites mobile home parks.
A transparent sequence for moving from rent roll to normalized NOI, from NOI to value range, and from value to a transaction that can actually survive infrastructure, compliance, financing, and closing.
Sequence
The seven-step underwriting path.
The purpose of the sequence is not to make every park comparable. It is to make the assumptions comparable so the unusual parts of each property become visible.
Verify current income
Start with occupied lots, actual rent, collections, utility reimbursements, park-owned home income, and recurring revenue that can be substantiated.
Normalize expenses
Rebuild expenses to include realistic taxes, insurance, payroll, management, repairs, utilities, professional fees, and recurring reserves.
Derive normalized NOI
Separate current operations from projected upside. A buyer can value current NOI while still recognizing a future plan.
Apply a valuation range
Use a market-appropriate capitalization range rather than one false-precision cap rate. Then test sensitivity around that range.
Price property-specific risk
Utilities, lagoons, wells, septic, roads, electrical systems, titles, homes, deferred maintenance, permits, and compliance can change the economics.
Test capital structure
Debt terms, seller financing, interest-only periods, amortization, balloons, and required equity can change what a transaction supports.
Map the closing path
Title, financing, permits, utility transfers, inspections, environmental items, and unresolved diligence should be translated into a closing-control plan.
Valuation formula
NOI ÷ cap rate is a starting point, not the whole answer.
Current normalized operations
Market + property risk
Capital needs + structure
What belongs in risk pricing
The property can invalidate the spreadsheet.
A private lagoon, failing road, untransferable operating license, missing home title, low-pressure water system, or major collection problem can matter more than a small change in assumed cap rate. The underwriting model should make those risks visible rather than bury them in a generic reserve.
Methodology limits
What this methodology does not pretend to be.
Use it
