It’s estimated that 17.7 million individuals are currently residing in mobile homes in the United States. The commercial real estate industry notices the rising demand for office space. Mobile home parks make a compelling case for investment due to their low cost of ownership, high rate of return, and general accessibility.
Most of the time, a Riverview mobile home park owner does little more than lease out tiny plots of land to others. Investors can buy a mobile home park outright and rent out each pad to tenants who either rent or own their own mobile homes.
Mobile home parks are in high demand, but they also offer clear financial benefits for investors. It’s so high that mobile home parks have the greatest cap rate of any real estate speciality, at between 7% and 10% nationally. Investing in mobile home parks has various other advantages, regardless of the market.
Affordability of Each Unit
You can buy additional mobile homes in a mobile home park for the same or less money. Any real estate asset class has the lowest cost per unit of investment.
Repairs and Upkeep Are Inexpensive
In addition to the minimal cost of repairs, investing in mobile home parks is usually a low-risk proposition.
Mobile home RV parks in Pendleton, Oregon, are less risky investments. The greater the number of units, the lower the danger of loss. The more tenants you have, the more evenly distributed the risk is. As a landlord, the high costs of occurrences like eviction or unexpected expenses are less of a burden when you own many properties.
Demand Is Extreme
As we have stated, there is a significant demand for mobile home parks. Due to zoning restrictions, new mobile home parks aren’t being built as frequently as they were as the need for low-cost housing increases and the demand for mobile homes in well-maintained parks increases. Mobile homes are an excellent answer to the affordable housing shortage baby boomers face on fixed incomes as they enter retirement.
Competition Is Lower
An additional advantage of investing in mobile home parks is that you avoid competing with the large number of people trying to buy traditional real estate.
Tenant turnover is a major expense for multi-family residences. The costs of maintaining the property, finding a new renter, and not having any income while the unit is vacant add up to thousands of dollars in lost revenue each month.
There is a low turnover since it costs the tenant thousands of dollars to relocate out of a mobile home park. Mobile home park owners often plan to stay for at least five years. This means that the turnover rate is minimal, and little risk is involved. The sale of a mobile home by a renter who wishes to leave opens the door to a rise in the rental price of the vacant property.
If you want to avoid competing with the vast number of people looking for traditional real estate investments, investing in mobile home parks in Oregon is an excellent option.