Investing in mobile home parks is certainly advantageous. It’s also worth every single penny as your ROI is so high compared to many other types of property investment.
Now, as a potential investor you’re probably wondering why mobile home parks are the way to go. Well, you’re in the right place, as in this article we’ll be illustrating 5 great reasons to invest in mobile home parks and just why they are the gun investment in today’s property market.
All investments have an element of risk attached, but you’ll soon see that investing in mobile home parks really is a very low risk opportunity. Check out Lee Kort and other online resources for detailed industry information.
#1 – Low Cost Per Unit
Mobile home parks generally have well over a hundred lots or more. Some lots will have homeowners situated on them, while others will be mobile homes that are rented from the park owners. All lots of land are rented out, regardless of whether the home is owned or rented, which means you’ll receive rent from every single lot occupied within the park.
Although the initial price to purchase an entire mobile home park might sound high in the first instance, when you divide that figure by the number of homes and lots you’ll own, you’ll soon discover that the cost per unit is actually very low compared to other property sectors.
#2 – Spread the Risk Factor
With such a low cost per unit, this reduces the risk should there be a problem with one of the mobile homes or lots. Another way the risk is spread out is due to the vast number of homes and lots in the park generating income for investors/owners.
Let’s say there are 200 lots in the park, but 10 are vacant. This means you’re still drawing monthly rental income from 190 lots while waiting to fill those 10 spaces. You’ll hardly notice any fluctuation in your cash flow.
Now compare that to owning just 2 traditional houses. If one sits empty for months, you only have one home bringing in income.
This is a major reason why mobile home park investments are such low risk.
#3 – The Demand Is Increasing
That’s right. With so many Americans getting out from under their monstrous mortgages and looking to downsize to save money, mobile home living has seen a steady rise in popularity that looks set to continue for many years to come.
Currently there are about 50,000 mobile home parks in the USA. That’s how popular they are, and soon there will be many more.
Now is the right time to cash in on this growing trend, as cash flow will be constant, risk will be low, and you want to take advantage before too many other property investors see the light and realize what a fantastic opportunity mobile home parks present.
#4 – Very Low Tenant Turnover
Because the demand for mobile homes located within parks is high, and set to remain high, tenant turnover is actually very low. Once tenants are inside a mobile home park they like, they’ll be extremely reluctant to move.
It also ensures your tenants are of a higher quality and will abide by the mobile home park rules and regulations that are in place to ensure both the park and residents are respected.
This is yet another reason why investors should look into mobile home parks, and yet another way that they are low risk.
#5 – Be Hands Off
There are management teams that specialize in mobile home park management, from collecting rents, maintaining the park, liaising with the owners and everything else associated with the business.
Management will run the park for you, so all you have to concern yourself with is watching your bank account fill with money each month when all the rents are due.
Mobile home parks can be a passive, hands off investment, something that most property investors are looking for.
There’s really no reason not to invest in a mobile home park.