Why are Mobile Home Parks such good investments?

Buying a Good Mobile Home Park

CCI Real Estate is a Commercial Real Estate brokerage specializing in HIGH RETURN, POSITVE CASH FLOW investment properties.  Over the years we have found that certain types of properties perform better than others.

We have identified Mobile Home Parks as the best real estate investment vehicle that we can find, because, when compared to other property types, they can offer:

When comparing Mobile Home Parks to other types of investment real estate, one key benefit becomes immediately apparent.  There isn’t nearly as much to maintain, operate and insure.  Many Mobile Home Parks are little more than land parceled into spaces and some underground utilities.  This means low Operating Expenses which increases your Net Operating Income (NOI), which in turn makes the property worth more.

Where a typical apartment complex may have Operating Expenses running at 55% of gross rental income, Mobile Home parks can run from 20% to 40%.

Another great feature of Mobile Home Parks is that, by their very nature, Mobile Homes are anything but mobile.  Once a tenant moves in with their Mobile Home, they’re not likely to leave again.  This means low turnover, higher occupancy and steadier, more reliable income, and spares you from having to rent the same unit over and over again.  And, unlike wayward apartment tenants, who can trash an apartment and leave in the middle of the night, owing big money, Mobile Home owners need time to move their units, and aren’t going anywhere in a hurry.  So, collections are generally better.  And it’s their unit, so they aren’t going to trash it.

And, if all else fails, a non-paying tenant risks losing their mobile home itself through court action.  So, the Mobile Home Park owner has better security than most landlords.  And they’re not going to trash an apartment on the way out.

This is just the beginning of the advantages of Mobile Home Parks over other types of real estate. 

DWINDLING SUPPLY – Many parts of the country are actually losing Mobile Home Parks to development and aren’t replacing them with new ones.  Fewer parks mean fewer options for tenants.  Short supply (of MH spaces) and high demand force space rents up, and make it less likely that tenants will move over a rent increase.
EXPANSION POSSIBILITIES – Many Mobile Home Parks offer the possibility of adding more spaces to rent.  Some have extra or unused spaces that just need to be finished out, with water or sewer lines.  Others have extra land with them where sites can be developed from scratch.  Either way, it’s far easier to expand a Mobile Home Park than an apartment complex or just about any other type of investment real estate.
SELLER FINANCING – Many Mobile Home Parks are offered for sale with Seller Financing, much more so than most other types of investment real estate.  Seller financing reduces loan acquisition costs, simplifies the escrow and usually offers better loan terms than banks.

Call or email us today for some specific examples, actual Mobile Home Parks that are for sale now.  We can show you all the Income and Expenses, how it is run, what we would recommend doing with it after the sale to increase its Net Income and Property Value.