Many investors agree, if you’re looking for a great investment, mobile home parks (MHPs) are the way to go. 5.6% of the population (that’s over 17 million people) live in mobile homes in the United States. What’s more, they are low maintenance, affordable and produce high returns.
Here are some reasons why many investors interested in a mobile home park will want to move forward with their decision.
What Does it Mean to Invest in a Trailer Park?
Before moving forward, let’s discuss what’s involved in investing in a mobile home park.
Basically, investing means you own the land the mobile homes are parked on. In some cases, you can own the houses themselves as well, but that’s an option you can consider as you move forward in the process.
The people who live on the land pay to rent it. As an investor, you can manage the property yourself or hire someone else to manage it for you.
Advantages of Investing In Manufactured Home Communities
Investing in a mobile home park comes with its share of advantages. Here are some to consider.
Low Cost: Investors can own a mobile home park for as little as $10,000 per lot and in many cases less. Owners can easily make their money back in as little as a year.
Low Risk: Investing in a mobile home park typically comes with minimal risk. Evictions and random expenses may occur, but these are spread out over a large portfolio.
Low Maintenance: Because some mobile home park dwellers own their own units, they are responsible for the repairs that occur in their residences. Owners are responsible for upkeep of other elements of the property, but the fact that they are not responsible for interior repairs helps keep costs down considerably.
High Demand: Mobile home parks provide low cost living for renters. That’s why this type of housing is in high demand. In addition, new mobile home parks aren’t being developed due to government zoning changes. All of this means there is plenty of demand for renting mobile home parks so investors will be able to make their money back quickly.
Low Turnover: Turnover is a problem for many real estate investors. When tenants move out, investors can lose money on rent and they will also have to spend money cleaning and renovating the unit. There is a lot less turnover in a mobile home park because it costs renters thousands to move out of their homes. When they do move, they take their house with them cutting back on renovation costs. Investors can also increase the rent on the land after they move.
Less Competition: Many mobile home park owners aren’t huge investors with a lot of capital. Therefore, investors with capital can come in and make improvements to make the land worth more. This will make it more attractive to tenants and they will be able to boost rents. Mobile home parks are also a great way to compete with the many investors looking for more traditional properties.
If you are an owner, you may not be a big-time investor, but knowing the potential of your land can help you make the very most out of your property. What will you be doing to boost your business?
Talk to us today about what you want to do with your mobile home park.
We’re friendly, the call is free, and there’s never an obligation!
…Mobile Home Parks are a Great Investment!