These days mobile home parks are very nice, well maintained communities of residents, most of which have been seeking an alternative lifestyle that doesn’t consume all their money and time. With this massive upsurge in the popularity of mobile home parks, property investors should be taking note.
In this post we’ll cover some of the main reasons why investors should seriously consider investing in mobile home parks, and if you need further convincing, just go online and do some research on expert sites such as Lee Kort.
You Can Acquire More Units for Less money
This truly is one of the huge advantages available when you choose to invest in mobile home parks. These parks often have hundreds of homes and lots inside them, and when you divide the overall purchase price by the number of lots, you’ll be surprised just how cheap each house and lot really is.
From the point of view of the investors, it means you’ll be getting a very healthy rental return on properties that didn’t cost much at all.
Mobile Home Parks Spread Your Investment Risk
With more traditional property investing, and the cost per unit generally being sky high, you’ll be limited in how many properties you can buy. If you only have a few investment properties and one or more remain vacant for a time, you’ll very likely suffer a negative ROI overall.
It’s a vastly different story when it comes to mobile home parks. The cost per unit is low, plus you have so many properties available that if a few sit vacant for a time, you’ll barely even notice a dent in your cash flow.
While nothing can ever be completely guaranteed, you have a far better chance of always experiencing a positive ROI when you invest your money in mobile home parks.
A Professional Management Team Looks After the Park for You
This equates to a really hands-off and passive income investment for you. At first glance a mobile home park with so many lots and residents might sound like loads of hard work for an investor, but with a professional management team looking after the running of the park, all you really have to focus on is the rent money flowing into your account each and every month.
The managers and the staff they hire will take care of all resident liaison, cleaning and maintenance of the park, repairs, security and more. They will also ensure all residents abide by the park rules.
Low Resident Turnover
The popularity of mobile home park living these days helps ensure a very high occupation rate. This means you’ll very rarely have a group of homes vacant at any given time. Once people are in, they’ll want to stay in and will be in no hurry to leave.
Another way to ensure low turnover rates goes back to the point above, and that’s having a decent management team on board. Not only should managers ensure the park is run smoothly and looked after, but they will also help instill a real sense of community and goodwill among residents.
Because of this close knit community spirit, people make a lot of friends with neighbors, which also helps keep the occupancy rate high and resident turnover really low.
Competition Among Property Investors Is Quite Low
Here’s the thing. When it comes to property investing, the majority of investors are still stuck in that traditional housing loop and have never even had the thought of investing in mobile home parks. Not because they’re not a great investment, quite the opposite, but simply because they have tunnel vision and believe traditional housing or commercial properties are the only true options.
Because of this mindset that exists, it leaves the door open to savvy investors who can think outside the traditional box. You can freely look into mobile home park investing without fear of missing out on a great deal because everyone else is driving up the price. Low competition means lower prices, generally speaking, so some really fantastic deals and opportunities are there, just waiting for smart investors to jump onto them.
As you can see, there are some very compelling arguments for taking the chance on investing in mobile home parks.