Benefits of Investing in Mobile Home Parks and Mobile Homes
April 25, 2010 
4 Comments
Right now the single family home real estate market is over saturated with investors and buyers. If you have not looked into mobile home parks and mobile home investing, now is a great time to do so. Here are just a few good reasons why you should invest in mobile home parks and mobile homes:
Mobile Home Parks
Higher Cap Rates
Cap rates on mobile home parks are somewhere around 10%. Cap rates on single family homes are around 5%.
Higher Rents
On average it costs about $3,000 to move a mobile home. As a result, most people don’t move their mobile homes from one park to another very often because of the expense. Therefore, you can raise mobile home park rents more often as opposed to single family home rents, where landlords are lowering rents and giving one or two month’s rent free right now.
Mobile Homes
You Can Buy Mobile Homes at or Below Market
Most mobile homeowners are not sophisticated and under sell their properties so you can buy them at or below market. You already have a built in equity to start with.
Debt Free
While single family homeowners have mortgages on their property, most mobile homeowners own their homes outright. Also, many are willing to provide seller financing, if necessary.
High Yields on Your Investment
You can create your own high yield private mortgage notes. Start by purchasing a mobile home at a discount price with cash. Then turn around and sell it to a buyer and finance the sale. If you keep repeating this with 25-50 people a month, you have created long term personal wealth and financial security for yourself. Also you are generating cash flow with someone else’s money so you can reinvest in another mobile home.
Mobile homes and mobile home parks are less likely to be affected by real estate cycles than single family homes. Because they are economical, they are in high demand. Many displaced homeowners who have lost their homes to foreclosures are moving to mobile home parks. Mobile homes do not depreciate faster than single family homes. Now that you understand the benefits of investing in mobile home parks and mobile homes, it’s time to get started!
I really love this post – very informative.
Thanks thanks thanks!
Susan,what Mobile Home course do you recommend? Have you had any success in this market?
I don’t really have a recommendation. I’ve never invested in MHP but you should check out Mobile Home Gurl at http://adventuresinmobilehomes.blogspot.com/