Property investing can be a tricky business at times and full of risks, especially financial ones. The traditional property market of regular houses and apartments is really a hit and miss affair when it comes to receiving a positive ROI.
A better and safer option is to invest your money into mobile home parks, as there are many key advantages that virtually guarantee you’ll see a regular return on your investment. So let’s take a look at 6 reasons why you should seriously consider mobile home parks for your property portfolio.
For further information, do some online research by visiting industry specific sites such as Sierra Mobile Home Park and others.
#1 – There Is Far Less Investor Competition
That’s right. With so many property investors still trapped in the mindset of buying up traditional houses and apartments, the savvy investor can be calm and relaxed whilst seeking opportunity in the mobile home marketplace.
Another advantage is that you don’t have loads of competitors placing their bids and driving up the buying price. This leads to an even greater return on investment when you buy into a mobile home park for a bargain price.
Competition in the property market equates to higher prices, so smart investors should definitely be looking at low competition alternatives, and mobile home parks is high on that list.
#2 – Investing In Mobile Home Parks Spreads the Risk
If you’re an investor and you own one regular house that you rent out, what happens when the home sits vacant for a while? You have zero cash flow and your investment becomes a negative rather than a positive.
Now let’s apply that scenario to a mobile home park with say, 200 homes. Keep in mind that everyone within a mobile home park rents the lots, even if they own their mobile home, so you will be receiving rent on 200 properties. Suppose 5 people move out and those properties are vacant for a while. You still have 195 properties bringing in rent each month. You would barely even notice the drop in revenue, and your investment would still be in the black.
This is exactly how investing in a mobile home park spreads the risk in a major way.
#3 – Have Professional Managers Run Your Mobile Home Park
Looking after so many residences might, at first, sound like a monumental task, but in reality mobile home parks can truly be a hands-off investment.
All you have to do is hire a management team that has the experience and expertise to run the park for you. Your managers will collect the rent, arrange leases, keep the park clean and in good repair, liaise with all the residents, handle disputes, park security and more.
#4 – Low Resident Turnover Due To High Demand
One of the major reasons there is such a low turnover of tenants in mobile home parks is because so many Americans are choosing to downsize, and many want to live in a mobile home.
From the point of view of the investor this is fantastic news as it means, for the most part, your mobile home park will be filled to capacity, with maximum rent coming in every single month.
Once tenants are in a mobile home park they are very reluctant to leave.
#5 – Quality Tenants Ensures Full Residency
Due to the popularity of mobile home parks, tenants know they have to abide by the park rules if they wish to stay living in the park. This helps ensure your park is filled with quality tenants, and this also means a better standard of living for everyone within the park, thus contributing to low turnover.
#6 – Mobile Home Parks Are Low Maintenance
This really goes hand in hand with it being a hands-off investment. Mobile home parks really are low maintenance. Not only do you have a management team taking care of the park, but the park residents will also maintain their homes and lots. Collectively the park is taken care of by everyone, which means as an investor you really don’t need a lot of input. This also means the amount of money you have to allocate to the upkeep of the park is minimal, especially when you compare it to what you spend on looking after just one or two traditional houses.