When people think about investing their money in property and real estate, it’s usually buying regular houses and apartments, maybe even a commercial premises. Some savvy investors have managed to see beyond the norm and are putting their money into mobile home parks instead.
Why is that? What are the advantages of mobile home park investment?
In this post we’ll look at 5 key reasons why investing in mobile home parks makes sense in the current market.
Table of Contents
#1 – There Is Not a Lot of Competition
It was mentioned in the intro that most property investors tend to stick to traditional investment opportunities, following the crowd, so to speak. For this reason, when it comes to investing in and buying up mobile home parks, you don’t have many competitors.
In other words, there won’t be that many people trying to buy the same property and perhaps out-bidding you on the final purchase price.
It also means there are a lot of options for mobile home parks to invest in.
#2 – Mobile Home Parks Are a Low Risk Investment
It’s all about spreading the risk factor. That’s one way investing in mobile home parks makes good financial sense.
Say you invest millions of dollars into one mansion. If there are any problems and issues associated with that investment, you have nothing else to fall back on to cover you financially.
When you buy up a mobile home park, you’ll have 100s of lots, each costing very little in comparison to a regular house and lot. This means if there is a drama with one or two lots, you have hundreds more on the property bringing in cashflow to cover any discrepancies. So much so that you’ll barely even notice a dent in your finances.
#3 – Mobile Homes Are In Huge Demand
The number of people downsizing each year and wanting to live smaller in dwellings like mobile homes is on the increase each year. Mobile homes are especially popular as they are located in parks; which means being able to take advantage of park facilities, and a park management team taking care of maintenance and other tasks.
Mobile homes are a way for people to simplify their lifestyles, as well as reduce their living expenses.
With such an upturn in mobile home living, that’s another valid reason to invest your money in mobile home parks.
#4 – Small Cost Per Unit & Less Tenant Turnover
It was mentioned earlier that the lots inside a mobile home park are a much lower cost per unit than buying a house or apartment, and that really helps lower any risks.
What you’ll also discover in mobile home parks is that, because the demand for mobile homes is so high, the turnover of tenants is really low. This equates to having a full (or mostly full) park all year round.
Rents are coming in regularly, and no time or money is wasted always trying to find new tenants to fill any voids left by departing residents.
#5 – Mobile Home Parks Are Low Maintenance
Homeowners are responsible for their own homes inside a mobile home park, so they take care of repairs and maintenance on their home.
For investors and park owners, it’s more about the upkeep of the grounds and the park itself, as well as management of the facility. They are generally pretty low maintenance and don’t cost a lot in upkeep compared to the amount of monthly rent the park generates.
Managing Your Mobile Home Park
If you invest in a mobile home park, you don’t have to be hands-on and manage it yourself. There are many fantastic mobile home park management services available, and resources such as the Sierra LA Mobile Homes website and others can help point you in the right direction.
The great thing about having your park professionally managed means you will have an investment bringing in true passive income. The management team will take care of the park, its maintenance, as well as collecting the rents, issuing leases and everything else involved in running the park.
Mobile home park investment is an opportunity overlooked by many, but the savvy investor will see the benefits almost immediately.