Mobile home park investing is a trade that many real-estate professionals pass up. That’s too bad because they’re all missing out on these massive benefits.
Mobile home park investing isn’t usually the first thing most people think of with real estate investment. And that can be a good thing!
It’s an opportunity that’s largely flown under the radar, giving interested parties a chance to make serious cash with an affordable investment.
If you’ve ever wanted to generate passive income as a landlord, mobile home park investing might be for you. Here are five reasons why it’s worth exploring:
1. Low Maintenance Costs
As a mobile home park owner, you’re faced with two options. The first is to own just the land and rent out spaces to mobile home owners.
The second is to own the land AND mobile homes to rent out to tenants.
The former is almost maintenance-free. You only handle landscaping, parking areas, trash pickup, and other property-related expenses.
This option can generate excellent income since there’s less chance of tenant turnover. Studies show it can cost $5,000 or more for someone to move their mobile home to another location. Once a mobile home owner parks on your land, it’s not easy or cheap for them to leave.
You may be able to charge more if you own the mobile homes on your land, but remember that maintenance costs will also increase.
2. High Demand for Affordable Housing
As housing costs climb, more people are looking for affordable options.
On average, a one-bedroom apartment costs around $1,057, while a mobile home rings in at just $564.
As an investor in mobile home parks, this is great news. You’re likely to have a steady supply of tenants, especially in areas where salaries tend to be lower.
In addition, mobile homes tend to offer more than the standard apartment. More square footage, nicer appliances and amenities, and a little land for outdoor recreation are just a few of the things that attract tenants.
Home companies like manufacturedhomes.com have elevated the concept of pre-fab homes. Tenants can get the same modern style and quality they’d find in an apartment for nearly half the price!
3. Less Competition
if you didn’t know that investing in mobile home parks was a thing, you’re not alone. Many real investors overlook this valuable piece of the industry because they’re after bigger or more expensive properties.
As a result, you’ll have fewer people to compete with as you’re looking for properties. This can help prevent others from driving up the price of land or mobile home parks for sale so you have a better chance of making a reasonable offer.
Mobile Home Park Investing: The Bottom Line
Could mobile home park investing be your entry into the real estate market? For many investors, the obvious answer has been a resounding “Yes!”.
But like any investment, it’s important to weigh your options and ensure you understand the cons with the pros. There’s no such thing as a risk-free investment, so make sure any gains will more than balance the losses.
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