Every year in America both new and seasoned property investors go searching for investment properties to add to their portfolios. Real estate is always popular because it’s relatively safe and profitable, but investing in traditional housing isn’t the only option available to investors. If you aim to seek out a good investment with high-profit potential, then mobile homes are the way to go. In this post, we’ll highlight some of the main reasons why you should consider them for your next venture.
There are also many great online resources on the subject of mobile home investing, such as the website by Lee Kort and other industry experts.
Return On Investment Can Be High
When you invest in mobile homes, often investors will put their money into a mobile home park; either as the sole owner, or by buying into the park with other investors. The major advantage of mobile homes parks is the number of houses and lots in them. Investors collect rents on every single lot, so the return on your initial investment can be very high when you compare it to other forms of property investing.
It’s a Long Term Investment Strategy
Mobile home parks are on the rise in the popularity stakes, as so many Americans want to downsize and save money on their cost of living. For this reason, the chances of your mobile home park always being full, or at least close to capacity, is very high. Due to the fact that so many people want to now live in a mobile home park, your investment really is set up for the long haul. Rental income will be coming into your account month after month and year after year. It’s a highly consistent return on investment.
Mobile Home Parks Spread the Risk
Let’s say you buy one traditional house for half a million dollars. If that house sits empty, your investment is costing you money and not making you anything. That’s an extremely risky (and expensive) investment. Now flip the scenario over to a mobile home park which has two hundred lots. If a few are empty for a time, you’ll barely even detect a drop in your cash flow, as you’ll have so many other lots consistently bringing in income. That’s one of the key elements why mobile homes are such a savvy investment opportunity.
Enjoy Higher Profits
As it really doesn’t cost much at all to look after and maintain a mobile home park, you’ll enjoy higher profit margins overall, especially in comparison to the costs associated with traditional houses and apartment buildings. The trick is to hire a really reliable and experienced management team who will run the park for you, leaving you hands off to enjoy the spoils. A good management team will be able to keep the mobile home park full, as well as keeping operating and maintenance costs to a minimum.
Resident Turnover Is Extremely Low
We’ve mentioned how so many people want to downsize and live a simpler lifestyle, and how mobile homes are proving to be the accommodation of choice. This leads to a very low turnover of tenants, due to the fact that once people are in a park they like, they won’t want to pack up and leave anytime soon. You’ll also find that your mobile home park attracts more quality tenants, as these tenants know the value of their situation and will respect the park and other park dwellers. All mobile home parks have a set of rules and regulations for residents to follow, and high quality tenants will abide by these rules.
Cost Per Unit Is Also Very Low
This point helps to increase your profit margin as well as spreading the risk. If you purchased several hundred traditional houses it would cost you an absolute fortune. Not so when you purchase a mobile home park with hundreds of homes and lots. The price per unit is minuscule compared to traditional housing, so you’re definitely getting more bang for your buck. Overall, when you weigh it all up, mobile homes are truly one of the most profitable and stable property investments you could ever make.