You may not have thought to invest in mobile homes before, but it could be a profitable investment in 2022. While the savviest real estate gurus are jumping on single-family homes, you can get a step ahead with lower-cost, high-demand units.
Since the crash a decade ago, the real estate market has become very tough. At first, the crash gave investors the opportunity to buy up properties at great prices. However, times change and the real estate market is no different. Lots of money could be made off the back of the real estate crash, but now you have to be more creative and inventive. This is why you should consider investing in mobile homes this new year.
Mobile home parks are not a thing of the past. According to Apartment List, 17.7 million Americans, about 5.6% of the population, live in mobile homes or trailers.
That number continues to rise – and for good reason. USA Today notes that the cost of mobile homes is drastically less than conventional homes. Moreover, the cost of electricity, gas and water from mobile homes can be well below $1,000 a year.
When you invest in mobile homes, you are giving yourself an asset with potentially higher returns. There are many great reasons to consider this investment opportunity, including:
- Mobile homes are affordable. You will most likely pay less than $100,000 per unit, including fancy and upgraded models.
- Maintenance costs are significantly less than single family homes.
- Mobile homes can expand your portfolio. This gives you the opportunity to own a larger collection of units, which lowers the risk of taking on losses.
- Demand is as high as ever. More people are looking for cost-saving opportunities and mobile home parks have greatly improved in recent years.
- Mobile home parks are energy efficient and eco-friendly.
According to Reonomy, only 20% of mobile home parks are professionally owned. The remaining market is completely for the taking.
In general, you are simply renting out high-demand land with low-risk units. The more units in your park, the less risk. For example, a random eviction or expense will be less damaging when you have a collection of units. The expense spreads out across your portfolio so that you don’t take on a major hit.
Original Source: Investment U