When it comes to owning a mobile home park pros and cons, you’ll find it’s important to be in the know.
Now don’t get us wrong — we’re not trying to scare you away from investing in a mobile home park. The thing is, we believe it’s important for you to make an informed decision.
After you read our article on owning a mobile home park and its pros and cons, you may decide it’s still the path for you. Or you may decide to ditch the idea and follow another investment opportunity.
Whatever you do, there’s no shame in a change of mind. It’s better to know where you’re going now — before you’re knee deep in an investment.
Owning a mobile home park pros and cons
Owning a mobile home park comes with pros and cons. We’ve highlighted several to help you in your research.
The pros of mobile home park ownership
There are many pros to owning a mobile home park. Plenty of investors have found it a rewarding experience.
Strong cash flow investment
Over at Cash Flow Connections, Hunter Thompson would agree that mobile home parks hold their own as a hopping investment.
There’s an increasing demand for mobile home housing, but the process to build new parks is a hassle.
Oftentimes, towns are concerned that a mobile home park could make the area unattractive. And that’s because of the unfortunate stigma that surrounds mobile home housing. A stigma that is not suitable any longer.
There’s a huge market for affordable housing
A crisis is always an opportunity for someone and it can be yours. The affordable housing market is in crisis. Mobile homes provide affordable housing to the American people but there aren’t enough parks out there. If you can get in on a mobile home park investment, it’s likely people will fill the empty lots – just get your ducks in a row and you’ll do well.
New parks are hard to come by
Because new parks are difficult to create due to zoning laws, you’re ahead of the game if you can acquire a park that’s already made. You won’t have much competition going against you.
You could have less maintenance on your hands
If the home in your park is owned by the resident, then you’ll have less maintenance on your hands. The resident will be responsible for the home’s maintenance and pay into rent and utilities. Your responsibility will be to keep the park functioning.
Residents can’t just up and leave
Here’s the thing about a mobile home park – residents who rent lots in your park can’t just up and move easily. If they own the mobile home, moving it is a very costly process. Most people don’t move their mobile home around.
Poor ownership means opportunity for you to succeed
Unfortunately, many “mom and pop” type owners don’t know how to run a successful mobile home park. They’re not getting a good return on their investment.
Fortunately for you, this is an opportunity to buy the park and make informed changes on how to run the place so you can make a profit.
The cons of mobile home park ownership
Now it’s time for the cons in this article regarding owning a mobile home park pros and cons.
The stigma is still in the air
So the dingy mobile home stigma is still a thing but take heart. Things continue to look up in that regard. Over time, more and more people are realizing the savings and increased quality of the mobile home. Sure, back in the 70s the mobile home was made of cheap materials and shoddy construction. But today, they’re stronger than ever.
There’s also a stigma about criminal activity. But who says you can’t vet your park residents? Some mobile home parks focus on families or seniors, for example.
People skills are a must
If you don’t want to deal with people, you could always hire someone to be the mediator between you and your residents.
As with any rent situation, you’ll need to be prepared to collect rent and deal with any conflict that might arise.
If you don’t do your research, you could buy a rotten deal
Before buying a park, ensure that all is in order with the local and state government. The park may not be up to date. That does not mean it’s a deal breaker. But before buying it, you’ll want to know what will be required to make everything legal and compliant.
Recognize the pros and cons and stay informed
So there you have it. Owning a mobile home park comes with its own share of pros and cons. We hope this helps you find some direction in your decision to purchase!