Lower Barriers to Entry: Compared to other real estate asset classes, MHPs have a lower cost of entry. You can buy a park for anywhere from $20,000 to $80,000 per space, making it a more accessible investment option. In contrast, apartment buildings can cost at least $150,000 per door, depending on the location and property size.
More Mom-and-Pop Owners: The industry is still heavily fragmented, with many mom-and-pop owners who have owned their properties for a long time. They may not have optimized the property’s full potential, leaving plenty of opportunities for savvy investors to increase profitability.
Potentially Passive Income: After a few years, an MHP can be somewhat passive. While investors will always need to keep an eye on their investment, the amount of work required can be minimal. With the right management team, you can rely on your MHP to generate a steady stream of cash flow.
Low Resident Turnover: One of the most significant advantages of MHPs is the “stickiness” of tenants. Once a resident purchases their home, they are much less likely to leave than renters in an apartment building. Many properties have long-term residents who have lived there for 15-20 years or more, reducing the need for constant lease up and marketing efforts to maintain your Net Operating Income (NOI).
In conclusion, these are just a few reasons why mobile home parks are the best asset class. With a lower cost of entry, more mom-and-pop owners, potentially passive income, and low resident turnover, MHPs offer investors a unique set of benefits not found in other asset classes. So, if you’re looking for a stable and lucrative investment option, consider investing in mobile home parks!
Vicktory Real Estate Group