If you are considering investing in a modular or manufactured home instead of a site-built home, then you’ll first want to be aware of the advantages from an investor’s point of view.
Going online and doing some research will help enlighten you to the many benefits, so be sure to check out sites on the subject of mobile homes such as Lee Kort and similar websites.
Let’s now take a look at 6 reasons why mobile home parks are a fantastic investment opportunity.
#1 – Mobile Homes Are Inexpensive
Whether you want to invest in one or two mobile homes, or buy up an entire mobile home park, the cost per unit of mobile homes is an absolute bargain compared to buying up traditional houses and apartments.
This means you can rapidly expand your property portfolio without spending a truck load of cash, as well as getting so much more for your investment dollar.
#2 – How Mobile Home Parks Spread the Risk Factor
When you invest in property you want to be able to reduce the risks as much as possible. This is another area where investing in mobile home parks has it all over the traditional housing market.
Let’s say an investor owns several regular houses. If one or more of those properties is left vacant for any length of time, that investor is losing money.
Flip that scenario around and say the investor owns a mobile home park with a hundred units. We’ve already covered that the cost per unit is low to start with, but in addition to this benefit, if a few mobile homes are empty for a spell, you still have enormous cash flow coming in every month from all the other properties within the park.
So even if you have some vacancies, there’s every chance you’ll still enjoy a very high ROI.
#3 – Mobile Home Parks Are Low Maintenance
Modern day parks, the lots and the mobile homes themselves have deliberately been designed to be low maintenance. This means less money needs to be spent on upkeep and repairs, which further enhances your bottom line.
The residents of each mobile home are responsible for taking care of that home and the small lot it’s situated on.
Paying for the upkeep of the entire park in general is often considerably less than what it costs to look after an apartment building.
#4 – Mobile Homes Are In High Demand
Right across America, people are choosing to change their lifestyles so they can live cheaper and more simple lives. Mobile home parks offer the perfect solution for those people seeking to downsize for whatever reason.
This has driven up the popularity of mobile home parks in recent years, to the point where these homes are in high demand. This equates to a high occupancy rate and a very low resident turnover rate.
When people get inside a good mobile home park they won’t want to leave. That’s exactly the type of scenario a property investor wants, as it ensures a positive return on investment and maximum monthly cash flow.
#5 – Your Park Managers Take Care of Everything On Your Behalf
Investing in a mobile home park with many units doesn’t mean you’ll be stuck with a massive workload. Quite the opposite. All you need to do is hire an experienced mobile home park management team to run the entire park for you.
This makes this kind of investment a hands-off deal which brings in true passive income.
Your management team will take care of the residents and the park itself. They’ll be in charge of leasing out homes, collecting rents, park maintenance and cleaning, taking care of amenities and community areas, park security and more.
Your managers will effectively be your dream team so you can focus on other things.
#6 – Low Competition Investment Opportunities
The majority of property investors are still trapped in the mindset of pursuing the traditional housing market. This not only drives up the prices, but also makes it so much harder to actually buy up the properties you want, because so many people are interested in the exact same property you are.
It’s a different story with the mobile home market. Most investors don’t even realize there’s a fantastic opportunity there with so many benefits, so there is way less competition, which can only be great news for the smart investor.