Mobile homes are not merely a great way for residents to live a more cost effective lifestyle, they are also proving to be very profitable investments, if you know how to take full advantage of this trending industry and capitalize on your investment.
In this post we’ll take a look at some key reasons why mobile homes are good investments, and something you should seriously consider adding to your property portfolio.
Rent Out Your Mobile Home
One major reason many people are choosing to live in mobile home parks in Los Angeles area, for example, is because of the much lower cost of living. Many of these folks can’t afford to buy or rent a regular home, nor can they afford to buy their own mobile home.
As an investor, you’re giving lower income earners an opportunity to live a good lifestyle, while at the same time seeing a regular and positive return on your investment through monthly rental income.
Property investing is all about making money on that investment. One way is through sale of a property for a profit, and the other is through renting out the property.
The Popularity of Mobile Homes Is On the Increase
This is particularly true in the California region, where mobile homes have always enjoyed good standing within the community.
There can be many reasons why the desire to live in mobile homes is on the rise, but one of the main ones is the current trend towards downsizing. Many people want a more simple life with more disposable income. The biggest expense or debt is their residence, so downsizing makes perfect sense on an economical level.
Another key reason is that there is far less maintenance when looking after a smaller home, which means residents have more time on their hands as well. More money and time leads to a more fulfilling lifestyle.
With the downsizing trend looking set to continue well into the future, now is definitely the time to start investing in mobile homes and mobile home parks.
A Low Risk Investment Opportunity
This point is more relevant when you own a number of mobile homes within a park, or invest in the mobile home park itself.
When you have a number of mobile homes in your portfolio, this spreads the risk. That risk is diluted even further when you own the actual mobile home park.
For example, if you have one or two residents tardy with paying the rent, you’ll barely even notice any financial effects due to the fact that you have so much cash flow coming in from all your other mobile homes.
It’s the complete opposite when you invest all your money in one standard house. If something goes wrong, there goes all your cash flow.
Owning multiple mobile homes spreads the risk factor, and that’s always going to be a positive when it comes to investing.
Turnover Is Low
It was mentioned earlier that the popularity of living in mobile homes is continually on the rise. For this reason, tenant turnover within mobile home parks is very low. People don’t want to leave once they’re in, because they know a lot of others are seeking mobile homes for rent in home parks.
If you own a mobile home park you’ll discover that your park remains close to capacity all year round, and that spells great news for your bottom line as an investor.
Competition Is Also Low
While there is high competition for people wanting to live in mobile homes and mobile home parks, it’s somewhat the opposite when it comes to investors looking to buy into mobile homes.
The majority of property investors are still stuck in the mindset of buying up parcels of land, traditional houses and apartments. Most don’t even realize that mobile home parks are a fantastic investment. Mobile homes are simply not on their property radar.
This is fantastic for you as an investor, as buyer competition is low; which not only means you’ll likely get to make the purchase you want, but you’ll buy in for a really good price as well.
With low competition, you’ll be able to pick and choose and basically name your price.