Due to the high price tags on properties, the average American has to think objectively when they think about housing. Owning a home worth millions of dollars, mortgaging your assets, taking out loans, and then spending the rest of your living days paying it off that too with interest. Mobile homes in such situations are the go-to option, with many already housed in such homes in vast parks throughout the country. Demand is increasing and if you’re looking to invest then this could be your time too. Low maintenance, decent returns, affordable to the general public. Investing in mobile home parks seems like a smart choice. If you’re looking to do the same then this guide will help you start your journey.
Why should you invest in Mobile Home Park?
1. Low-Risk Option- Since mobile home parks have many spots in it to rent out, your risk due to any sort of problem is spread out across the park. If you own 100 spots in the park and have trouble with a couple of tenants, you can kick them out and the loss you’ll attain is spread out across the park. Now if you were to kick out a tenant from a rented house of yours, if you don’t own multiple properties you won’t have any other asset to absorb the loss.
2. Easier to repair and maintain– Owning spots in the parks means that you aren’t responsible for the upkeep of the mobile homes, only the park. This puts the responsibility of the home on the tenant since you’re only renting out the spot. Now you’re only responsible for the upkeep of the park, you won’t have to worry about plumbing or electricity in the homes. You won’t even have to hassle the contractors on a daily basis. You won’t spend a penny for any repairs on the home, making it possible for you to own multiple spots in the park and worry less.
3. Easy investment- Mobile home parks have the lowest cost investment per unit when compared to other assets in real estate. Meaning that you can own multiple units without shelling out hundreds and thousands of dollars from your pocket. When buying properties you’re expected to spend more as you’re paying for a structure that’s already been built. All you have to do is lease it out. But when it comes to Mobile home parks, you’re not paying for built structures, you’re paying for pieces of land. Land that you rent out to people who bring their own built structure which in this case is a mobile home and park it on your land. Which makes owning a mobile home park a cheaper option.
4. High Demand- Since there are only a limited number of mobile home parks, the demand is high in specific age groups. Those who dreamed of owning their own home are waiting for property prices to normalize but these prices keep touching the sky. Renting out homes will definitely eat out their savings so a cheaper, sensible alternative for them is to purchase a mobile home and rent out a space in your park. The ones who’ve retired on a fixed pension find it difficult to manage their big house by themselves so they move out to a small, manageable mobile home. Living life on a fixed dime and manageable expenses.
How can you get started with investing in mobile home parks?
a. Agents- The easier resource you have available if you don’t know how to get started yourself is to reach out to a real estate agent and if they’re local they’ll know some properties that aren’t listed yet and you could steal a good deal through them.
b. Research- If you’re confident in yourself that you can get started by yourself, you need to research. Look for mobile home parks in your area, contact the owners, and send them letters inquiring about the property and if they’re interested in selling.
c. Websites- There are many websites out there that let the owners list out their properties in case they want to sell. Keep an eye out for good deals on such websites. You’ll be able to find local listings as well as listings that may take you out of town.
If you’re serious about investing in mobile home parks, you will need to put in the work. Drive out to parks, talk to the owners, make good deals, and then if you manage to strike a deal then you have to clean up the park, renovate if needed, advertise and rope in customers. Keep in mind that the location you choose is very important when purchasing a mobile home park. If it is a popular and expensive neighborhood then people will be willing to pay over the normal amount.