Mobile Home Parks | How Can This Investment Be Beneficial

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Mobile Home Parks

Mobile home parks investments are a little-known specialty, but those who have found them are fully aware of their recession-resistant nature and their exceptional capacity to produce constant cash flow.

Finding the simplest approach to investing in mobile home parks can be difficult for people who love them. Investors have two choices: purchase a park on their own or collaborate with an established syndicator of mobile home parks.

Here are 4 Reasons Why Investing in Mobile Home Parks is Growing in Popularity.

#1: Low Maintenance Costs

Only the upkeep and repairs of the mobile home park are the owner’s responsibility. The expenditures of maintaining the neighborhood pool, gardening, and snow clearing may all be included. Home repairs are not the owner’s responsibility to pay for. As a result, there aren’t any plumbing problems or bad wiring that need to be fixed. These expenses fall on the mobile home owner. Land upkeep is often done once or twice a year. Therefore, investing in a mobile home park is much less complicated than investing in a rental property.

#2: High Demand

Since a few years ago, housing costs in the US have been rising more quickly than people’s salaries. In the US, about 33% of households pay more than 30% of their annual income on housing. For those who make less than $25,000 annually, it is significantly worse. Mobile home parks are one approach to address the demand for affordable housing, which has increased as a result of this. Additionally, more mobile homes than ever before are of higher quality. Many young professionals are drawn to low-income housing and communal living since manufactured housing today is equivalent to on-site housing.

Mobile homes are in high demand, but neither enough or quickly enough are they being built. Several locations have land-use restrictions because of things like zoning. Additionally, mobile home park management companies face geographical restrictions that reduce the amount of vacant property that can be developed into mobile home parks.

The likelihood that this supply-demand imbalance will not be closed anytime soon is good news for investors.

#3: Spread Out Risk

The risk of loss decreases because mobile home parks enable investment corporations to buy more units per investor dollar (as was previously said). In other words, the risk is spread out more when there are more tenants. Imagine that you own four single-family homes and that one of your tenants compels you to evict the other and leaves you with $20,000 in costs. Bummer. Five years’ worth of investing profits are now gone. Even though they are uncommon, those kinds of circumstances do arise.

The high cost of those unusual events, however, is dispersed across your whole portfolio when you possess a sizable collection of units.

#4: Less Competition

Instead, the majority are straightforward businesses with non-landlord professionals as the owners.

As a result, you can buy at fair prices and later add value by making upgrades that will draw in long-term tenants.

For investors who do not want to compete with the vast number of investors seeking conventional real estate investments, mobile home park investing is a terrific option.

Connect with mobile home park management companies to get better deals while investing!

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