Do you know that about 22 million people in the US live in mobile homes? (Source: https://movity.com/blog/mobile-home-statistics/)Out of which 56.4% have spent more than ten years living in their mobile homes. And the best part is, these numbers are increasing every year. So as an investor, don’t you think mobile home parks are an excellent and profitable investment?
However, you need substantial positive factors before investing in this real estate. Here in this article, we have given reasons – why mobile phone parks are profitable investments. So if you have any queries like- what are the mobile home park expenses?
We will clear everything right here.
Low Cost Per Unit
The biggest reason to invest in mobile home parks is the low-cost advantage. You can spend $100,000+ to invest in a home, or you can spend $10,000 on buying the same sized mobile parkland. Mobile home parks allow buying more units at less price. You won’t believe it, but it’s one of the lowest-cost investments per unit than any other real estate. In the US, most of the park owners own the land but not the units. They rent the land units to the tenants looking for a safe and secure place to live with their families.
Most Profitable Real Estate Investment
Many people ask- how to value a mobile home park? A park’s value is based on where it’s located, the housing units it has, and the rent.
The average mobile home parking rent in the US per unit is approximately $280 per month. And, the net income of an average mobile home park owner from one unit is $2,016. Now let’s multiply this amount by the total parking units a park owner rents. Suppose the total parking units are 50 and the average rent per unit is $280. Thus, the net income of an average mobile home park owner is around $14000. And the net income depends upon the price and number of units rented. One more example, if you have a space of 300 units and your rent is $300, you can make around $90,000 per year.
This is something no investor would tell you because it’s the key to their success. You can own multiple mobile home parks and can double or triple your net income within months. Don’t you think this reason is enough to invest in mobile home parks? Well, if you need more, stay with us till the end, there are a lot more in the way.
Low-cost maintenance is another excellent feature that makes mobile home parks a profitable investment. Unlike other real estates such as apartments or houses, the mobile home park operating expenses are meager. The reason why they are low is- because you are just renting your land. You aren’t renting pre-manufactured houses. All you have to take care of is minor maintenance expenses like creating and boundary walls, security, and other costs.
Your major mobile home park operating expenses should always be towards the security of your area. People these days are very precise about their safe and secure living. Thus, investing in security assets like watchmen, CCTVs, lights, etc., will have the right image of your rental. And therefore more and more people will come to rent your land units.
So these were a few reasons why mobile home parks are valuable for money investments. Do tell us about your views on this article in the comment section below.