Why Invest In Mobile Home Parks?

Historically, MHPs have been resilient and weathered economic storms better than most other commercial asset classes. Demand typically increases in declining economies.

The demand for affordable housing options remains high across the United States. Mobile homes provide an affordable solution for many families, ensuring consistently high occupancy rates for well- managed mobile home parks. This demand helps mitigate vacancy risks and contributes to the stability of your investment. 20% of the U.S. population has a household income of $20K or less. 10,000 baby boomers are retiring daily, many relying on social security income of only $15K per year.

MHPs have higher capitalization rates and returns than most other commercial asset classes. This is amplified by relatively low expense ratio (35-40%) as compared to apartments.

Mobile homes are lowest-cost form of acceptable shelter in the U.S, filling an important role in low- income housing Mobile homes can be built for half the cost of site-built structures.

Mobile home parks often come with lower operational expenses compared to other real estate investments. As a landlord, you're responsible for infrastructure maintenance, but tenants are responsible for their homes. This cost-sharing arrangement can significantly boost your profitability over time.

It can cost $5K or more to move a mobile home. 90% of homes are never moved after being placed. MHP income can be very stable, providing consistent cash flow once stabilized.

While mobile home park investments are renowned for their cash flow, they also offer potential for value appreciation. Savvy investors can identify opportunities to improve the park's infrastructure, amenities, and management, leading to increased property value. This combination of cash flow and potential appreciation creates a compelling investment proposition.