When it comes to investing in the real estate sector, there are numerous investment opportunities available for an investor to easily take advantage of and make consistent profit from. Investing in mobile home parks is one of them. And although it still looks like a relatively new investment opportunity, the mobile home sector is seeing a steady increase in both demand and popularity all over the country.
In this article, I will be talking about this investment opportunity, why you should invest in it and the numerous benefits it offers you as an investor looking for consistent returns.
What Are Mobile Home Parks and How Does Mobile Home Park Investing Work?
When you are investing in a mobile home park, you are simply buying several units of lands that have been subdivided into separate lots that will be rented out to different mobile homeowners. These lots will be leased out to homeowners for either a monthly or yearly fee. So while they own the mobile home, you own the mobile home park and are only in charge of maintaining the park.
This way, you get to collect rent money for the pads you’ve rented out without needing to pay for the cost of repair or maintenance to the mobile homes.
Why Should You Invest In Mobile Home Parks?
1. Apartment Rents Are At Historical Highs
With the rising cost in renting apartments, buying and owning a house, a lot of younger families and low –wage earners in the US are gradually shifting their attention to a cheaper alternative that is taking the country by storm. This change in the home owner’s preference as brought in a lot of interest into the mobile home park sector thereby leading to an increase in demand for mobile home parks and a clear, consistent return for their owners.
2. Investment Cost Is Very Low When Compared With Other Real Estate Asset Classes
Investing in a mobile home requires little capital from you, especially when compared to the long term consistent returns and high return the asset will bring in. Not only that, mobile home parks allow investors to acquire more land units for less money, this way you can double your land units and triple your returns.
3. Provides Affordable Living For Younger Families
The affordability of mobile homes is making them a favorite for younger families and first-time homeowners. This way the demand is always high and you can expect to have all your units rented out or sold, making it the best investment for you if you are looking for consistent returns.
4. Well, Located For Future Land Use Change
Investing in mobile homes allows homeowners to get the best locations at the cheapest prices available. This way, you can easily get a mobile home at one of the best places in the city or state for a very low price. These land units can also then be used for other businesses in the future as you are guaranteed life ownership of the lands you invested in.