Four Benefits to Mobile Home Park Investing
Back when the market crashed, real estate investments were easy to make. Almost every property was a good deal and lots of money could be made. That was over ten years ago. Now that the real estate market is flourishing, its even harder to make easy money like that.
But in this blog, we will show you how small town investor and contributing writer for Forbes, Brandon Turner writes about his experience investing and how he learned to put his faith and money in mobile home parks.
Today, the real estate market is being scooped up for all that its got. Single-family homes don’t stay on the market for long, and new investors in the game are learning quickly and buying up all the foreclosure homes they can find. Moreover, hedge funds and large investment groups are grabbing all the apartment complexes they can find.
The only thing that’s left for investors to do is to sit and wait for the next market crash or they can get creative and seek opportunities in this ever-growing market. Of course, there is no problem with sitting out a couple of years, but Brandon Turner had a different idea.
The opportunity Mr. Turner speaks of is investing in mobile home parks. And to clarify, this does not include buying a mobile home, but the entire park, where residents own or rent homes, and leasing out the land.
His interest peaked in the matter after interviewing a few mobile home park investors online. He soon realized that mobile park investors were killing the game.
But why are mobile parks one of the biggest investments in the nation? Simply because the benefits reap the disadvantages. Here are four benefits to investing in mobile home parks.
1. Each Unit is A Lower Cost
The cost per unit to invest in a large multi-family property or single-family home is high. But mobile parks let a person go and acquire more units for less. This is because most park owners own the land, and not the mobile homes which then means that the cost of investment is going to be significantly lower in contrast to the number of units owned. That’s like paying $100,000+ for a home or apartment lot when you could be paying $10,000 for a lot in a mobile park.
2. No Contractors or Landlords
Another factor that makes Brandon Turner excited about mobile home parks is that he doesn’t have to work with contractors. Contrary to traditional homes, dealing with a contractor is an ongoing hassle. However, by not owning home the tenants live in, makes the mobile homeowner responsible for maintenance and repairs. This can result in a lower cost for repairs and maintenance.
3. High in Demand
While home prices are rising, incomes for Americans are not. Therefore, the need for affordable housing is in high demand. Mobile homes do not have mortgages like traditional homes, so this aspect interests families the most. Brandon Turner states, more and more lower income Americans are looking to mobile homes as their last chance at being a homeowner.
4. Little to No Competition
The last benefit of investing in mobile home parks is that this market is a hidden gem in the real estate investment industry. This space is best for investors who are looking for a good deal, and who don’t want to compete in an aggressive market.
To learn more about mobile home parks, please visit Townsend Home Sales or call us today!