In America, both new and experienced real estate investors are looking for investment property each year to expand their portfolio. Real estate is always popular because it is relatively safe and profitable, but investing in traditional housing is not the only option available to investors. If you are looking for a really good investment with high profit potential, 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 business.
There are also plenty of great mobile home investment resources available online, such as the Lee Kort website and other industry experts.
The return on investment can be high
When investing in mobile homes, investors often invest their money in a mobile home park. either as the sole owner or by buying into the park with other investors. The main advantage of mobile home parks is the number of houses and land in them. Investors collect rents for each property, so the return on your original investment can be very high when you compare it to other forms of property investment.
It is a long-term investment strategy
Mobile home parks are becoming increasingly popular as so many Americans want to reduce their living expenses and save money. For this reason, the probability is very high that your mobile home park is always full or at least almost full. Due to the fact that so many people now want to live in a RV park, your investment is really long term. The rental income is transferred to your account month after month and year after year. This is an extremely constant return on investment.
Mobile home parks spread the risk
Let's say you buy a traditional house for half a million dollars. If this house is empty, your investment will cost you money and will bring you nothing. This is an extremely risky (and expensive) investment. Now turn the scenario into a mobile home park with two hundred lots. If some are empty for a while, you will hardly notice a drop in your cash flow, since you have so many other lots that are constantly generating income. This is one of the key elements why mobile homes are such a smart investment opportunity.
Enjoy higher profits
Since the maintenance and care of a mobile home park does not cost much, you will achieve higher overall profit margins, especially compared to the costs associated with traditional houses and apartment buildings. The trick is to hire a really reliable and experienced management team to run the park for you and leave your hands free to enjoy the loot. A good management team can keep the mobile home park full and keep operating and maintenance costs to a minimum.
The turnover of the residents is extremely low
We mentioned how many people want to shrink and live a simpler lifestyle, and how mobile homes are proving to be the choice of accommodation. This leads to a very low fluctuation of tenants, since once they are in a park they like, people no longer pack and want to leave soon. You will also find that your mobile home park attracts more high quality tenants, as these tenants know the value of their situation and respect the park and other park residents. All mobile home parks have a number of rules and regulations that residents must follow, and high quality tenants will adhere to these rules.
The unit cost is also very low
This point helps to increase your profit margin and spread the risk. If you bought several hundred traditional houses, it would cost you an absolute fortune. Not so when buying a mobile home park with hundreds of houses and properties. The unit price is tiny compared to traditional apartments, so you definitely get more for your money. Overall, mobile homes are one of the most profitable and stable real estate investments you could ever make.
