If you’re looking for a get rich quick scheme, move along please, there’s nothing to see here. However, to the savvy businessman, a mobile home park investment is as close as it gets to a sure thing in this world. Stock market? No comparison. Gold? Not even close. Income property? You’re getting warmer but there’s still nothing like a good mobile home park for cash flow, low maintenance, and strong appreciation.
Like other forms of real estate, a mobile home park investment earns cash for the owner in many different ways, with the obvious being cash flow from lot rental. But what about an on-site laundromat, vending machines, water/sewage services, park-owned home rental, and even a lease to own option on the mobile home’s themselves?
We mentioned lower maintenance costs. Don’t gloss over this. It can make a big difference in your bottom line. Smart mobile home park owners rent lots only. That means the ground under the trailer. Tenants have to either bring in their own trailer or purchase one from the landlord (you). This strategy means you’re not stuck paying for or repairing every little thing that goes wrong inside the home. This is a major difference between the landlord/tenant relationship in an apartment or other traditional rental relationship.
Your maintenance is primarily confined to infrastructure upkeep on roads, insuring residents keep their lawn mowed, etc. A basic lesson the prospective or current mobile home park owner should learn is that a neat, clean park is more attractive to tenants and allows a higher rent to be charged.
In the world of mobile home park investment, higher rent is good.
The Mobile Home Park Listings Team
Flickr / Jayson Ignacio