Should You Invest in a Mobile Home Park?

By: Kevin Vandenboss

Mobile home parks have gained popularity over the past several years, and for good reason. In many ways, a mobile home park is an investor’s dream. There’s cash flow, low overhead, and minimal maintenance. Besides that, there will always be a demand for them.

Easy investment

If you’re not familiar with mobile home park investing, you might think it involves owning several mobile homes. With the amount of maintenance that would involve, that doesn’t sound like an easy investment. However, most mobile home parks are nothing more than several individual lots that are rented out to people who own mobile homes.

Cash flow

Investing in mobile home parks is all about cash flow. Every month, the lot rent comes in, and not much has to go back out. Expenses are low compared to multifamily or commercial properties, so a high percentage of your income goes right to the bottom line.

If you own other investment properties, you know how expensive property taxes can be. However, property taxes aren’t nearly as high on the land itself as they are on the structures. Since you don’t own the mobile homes, the only improvements you have to the land are some roads and an office or clubhouse.

Limited supply

You rarely see new mobile home parks being built. That’s not because they aren’t in demand; it’s because most municipalities don’t want new ones being built. Buying vacant land to develop a new mobile home park is not an option in most areas, so it’s a market that’s unlikely to become oversaturated.

Mobile home parks will always be in demand

Mobile home parks fill a need in the housing market. Mobile homes are relatively inexpensive and can provide a fairly large living space. People are able to own their own home, in a space large enough for a family of four, for less than it would cost to live in an apartment or rent a house somewhere. There will always be a need for affordable housing, and mobile home parks will always be able to fill that need.

The demand isn’t only there for the homeowners, but investors will most likely always be attracted to mobile home parks as well for the same reasons we discussed here. This will allow you to be able to liquidate your investment down the road relatively easily.

Is it right for you?

There’s no question that mobile home parks are a great investment. The question is whether mobile home parks fit into your overall investment goals. If they do, it’s definitely an investment worth exploring further.

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