3 Reasons to Invest in Mobile Home Parks

Mobile home parks are a hidden investment opportunity compared to other commercial real estate. This is because it isn’t as widely advertised.

Let’s examine three reasons to invest in mobile home parks from the long-term cash flow angle:

1.Low Rent – Americans have downgraded their homes and lifestyles due to the recession and other factors. The low rents in mobile home parks make it appealing to renters. How does low rent boost profit margins? By calculating the total revenue of all the homes within the park, as well as the land space, the figures add up to a significant amount. Experts agree that pricing rent low contributes to sustained high-demand.

2.Low Supply and High Demand – There are over 50,000 mobile home parks within the United States. In addition, construction of new mobile homes are somewhat at a standstill. This means that old and available supplies are met with high demand.

3.Success Rates – One of the best ways to become financially successful is to gain the wisdom of those who have already accomplished the feat. Warren Buffet, unlike Donald Trump, is reportedly the biggest investor in mobile home parks, whereas Donald Trump invests in luxury real estate. Which market do you think is easier to tap into? Another Fortune 500 maven, Sam Zell, made his riches through mobile home park investments. Average men and women also have the opportunity to succeed in this market through due diligence research.

Despite these appealing factors, investors will need to exercise business savvy to get a good return on investment.

Jason Hartman advises:

Ultimately, lucrative mobile home park investing boils down to accessibility for the target market in terms of low price and convenience to the metropolis. (Top image: Flickr | KOMUnews)

The Commercial Investing Center Team


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