Posts

In the past, mobile home parks were not the ideal investment in real estate. That is now a thing of the past. The opinion about investing in mobile home parks has changed significantly. After the decade-old real estate market crash, investing in lucrative properties was much more comfortable than before. In those days, investing in property was simple, with an excellent return on investments in a short time.

However, the real estate market today is significantly different than it was 20 years ago. The current market is much tougher than it used to be. Due to higher interest rates, homeowners looking for a new home before the next interest rate hike take up small residential properties quickly.

New investors are starting to get familiar with the do and don’ts of real estate investment. They are rapidly investing and buying the best commercial properties, including the minor multi-family deals on property. On the other hand, large companies with significant capital to invest are scooping up the massive apartment complexes at a price that seems unreasonable to the savvier real estate investors.

Considering the changing market trends, the investors willing to invest in real estate have two choices: they can sit the market out and wait for the market to crash yet again. The second option is that they take a chance with the market and be creative about the different investment opportunities.

One such opportunity is to invest in a mobile home park. Here is why investing in mobile home parks is a feasible decision for keeping the capital safe.

Low Per Unit Cost

The cost per unit of investing in homes and other properties is very high. On the other hand, mobile home parks have a low per-unit cost that makes the investment more profitable than other property investments.

A real estate investment in a mobile home park offers more value per unit with adjusted higher risk returns. The owner of the mobile park owns the land, not the housing units itself. It indicates that the cost of investment is relatively low compared to the number of housing units owned.

Low Maintenance Cost

The most exciting new investment opportunity in a mobile home park is its low cost of repairs and maintenance. It does not require the owner to deal with different contractors for maintenance and repair.

Less Upkeep as Compared to Homes

The mobile home owner is solely responsible for the upkeep of the property once they decide to buy a mobile park as a real estate investment. The expenses for the maintenance of the mobile home park are considerably lower than other properties. 

Lower Risk of Loss

Real estate investors are willing to invest in a mobile park because it allows them to purchase more units for every dollar invested. The risk for loss is reduced considerably, as the mobile park can hold more tenants. Having more tenants minimizes the risk of loss as it spreads out more than owning a home or similar property. For example, owning a property like a single-family home will be more expensive and risky if the tenants enforce an eviction. The damage left by the removal will be an expense incurred by the homeowner. This situation is less likely to arise in a mobile park.

High Demand

Different factors are bound to contribute to the increasing demand for well-maintained mobile home parks. The zoning changes, gentrification, and government-based zoning discourage further investment in mobile home parks. However, the thing is that residential property prices are rising to new highs. However, the average income of the household in the US is not increasing at the same pace. This gap between income and expenditure has forced many families to own a mobile home instead. The high demand for affordable housing has led to an increased demand for mobile home parks.

Reduced Tenant Turnover Rate

Investing in mobile home parks is a better investment decision, as the tenant turnover rate is much less than single or multi-family properties. Tenant turnover is the biggest fear of every property owner; thankfully, the turnover rate for mobile home owners is much less. 

Mobile home park owners are not required to track down new tenants as aggressively as a homeowner. It’s easier to find new tenants for a mobile park owner as more and more people are considering moving into a mobile park for an affordable living opportunity. 

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file, critical financial documents and back office tools in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. With flat rate service plans, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Trailer park illuminated at dusk in Holland, Netherlands
In the US, more and more folks are taking to mobile homes. In fact, the concept of mobile home parks has flourished quite well. Call it a trailer home or a residential caravan, mobile homes can be used as permanent homes while on vacation in the wilderness or if you just want to get away from all the fuss, dating back to the good old days when a compartment was attached to the rear of a vehicle. However, a lot has changed in the last decade where fully furnished, stylish and lavish interiors make a house in a neighborhood look like peanuts. With extra luxury options, such as Corinthian leather and aluminum bases, it’s all about how much is spent on the traveling home.

Mobile home parks have popped up on many national highways around the country and some even have areas for tourists, such as Yellowstone. It has become explosively popular in modern times, as the population boom and scarcity of resources has made this a viable option for many. In Europe, travel trailers were used by gypsies and showmen who traveled extensively and spent most of their lives with their horse-drawn caravan. Some ardent trailer owners hitched rides on rail lines in the early 20th century, not only in the US but in England as well. At the turn of the century, trailers for leisurely caravanning has risen considerably.

Mobile Home Parks

Mobile home parks are designated spaces where travelers can park their homes and enjoy electricity and running water. In addition, some feature satellite TV, among many other services, for a specified charge. The rates vary from $25-$45 a night and even provide discounts if reserved for a long duration of time. These parks have proper pavements, street lights, small roads, etc., which make them an ideal location for people looking to get away and do their own thing. Furthermore, with recent stats in mind, nearly 20 million Americans use trailer homes for convenience. It can be cheap housing and, on the road, it’s a home away from home.

Popularity in the US

Mobile park homes are most popular with residents from South Carolina. They have the highest percentage of trailer home use. That’s just how they roll, as Miss South Carolina, Brooke Mosteller, stated it. She caused a furor by saying that she belongs to the state where 20% of all homes in South Carolina are mobile homes. Due to its image problem, certain states may not easily incline towards it but it has many advantages. Most states have communities devoted to the amelioration of leisure usage of trailers and other similar experiences.

Advantages

With low rental fees, mobile home parks provide almost everything that a traditional home would including water, sewers, garbage collection, and recycling. It doesn’t require paying taxes and each trailer parked has its own nominated space for dwelling. With minimal maintenance, trailer owners don’t need to worry about the exhaustive search for repairs as there are qualified technicians across the US. Plus, one doesn’t have to trim trees nor mow the lawn as it’s taken care of. Parks usually allow pets so residents can bring their furry friends along for the ride. The locations are customarily scenic and breathtaking and the outdoors does wonders for the mind. Without worrying about upgrading, mobile home parks allow you do anything you want with your home, unlike some gated posh residential societies. It has ponds, parks, and even lakes, making it ideal for many who are on a leisure hunt. Complete with gyms, pools, and even organized community events, it really is a booming concept. We will see more and more of these supported by entrepreneurs as, literally, thousands can avail from this form of cheap housing.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.