Mobile home parks have long been considered a safe investment. But lately, they’ve become much more than that. The real estate boom has brought with it a new appreciation of mobile home parks as an asset class, and investors are taking notice.
So if you are considering buying a safe and lucrative mobile home park, now is the time to do it. But if you are still contemplating, here are some things you should know about this investment option and why it deserves your value for money.
Low-Risk Profile of Mobile Home Park Investment
A low-risk profile is important for today’s real estate investments. Mobile home parks are typically low-cost, long-term opportunities for beginner and expert investors alike.
Mobile home parks typically have low vacancy rates and stable rental income. These factors reduce the risk of unexpected losses due to vacancies or decrease in rents.
Plus, these properties are often located in economically stable areas with high levels of consumer demand for housing. This combination of factors contributes, among many others, to a stable and reliable return on investment for investors.
Steady Cash Flow and Predictable Income
If you’re looking for an investment that will give you consistent returns year after year, mobile home parks are a great place to start. It doesn’t matter if the economic stability is great or if it’s in a downturn.
Mobile home parks have always been a stable source of income for investors, and that’s not likely to change anytime soon. They are diversified investments that can provide additional income streams, such as rental fees from individual homes or the sale of land.
Additionally, some parks may have commercial activities such as restaurants or retail spaces that generate additional revenue.
Thanks to this continuing trend of passive income, mobile home parks are a great investment for retirees and other investors who want steady and continuous returns.
Low Maintenance Costs
High-income streams with very low maintenance costs are one of the main reasons why mobile home parks make for a low-risk investment option. The nature of the investment is what leads to this benefit, as well as its longevity.
Mobile homes require very little maintenance, which means that you’re not spending money on repairs and replacements. They also don’t require much landscaping, as the property manager usually takes care of the public spaces like lawns and gardens.
You won’t also have to spend much on upkeep costs, which is a huge benefit to any investment property owner.
Storz Management Company’s goal is to ensure that your mobile home park operates smoothly with our top-class property management services.
Our staff works hard to ensure your property is well-maintained and up-to-date, with professional tenant screening and advertising. This way, you don’t have to worry about anything other than making profits.
Potential for Long-Term Growth
With the demand for affordable housing growing and more people moving into urban areas, mobile home parks are becoming more and more valuable.
These parks offer affordable housing options for people with limited incomes and a place to spend leisure time. It attracts young families and senior groups, so the longevity of stay is relatively higher.
Additionally, the increase in traditional housing costs makes it a wise decision for individuals and families to purchase a mobile home without breaking the bank. The growth is at 48.55% for the last 10 years, RenoFi reports.
The world of home ownership is a fun and rewarding one. However, you don’t want to be so in love with the idea of owning a home that you rush into a purchase without giving the matter proper consideration.
If you’re looking for a good investment property diversification, there are plenty of options out there—but none are quite as unique as mobile home parks. It’s a great venture for investors who have some capital to invest and are looking for somewhere to put it that offers both a reasonable return and possible appreciation.
To learn more about Storz Management Company’s mobile home communities, contact us at (916) 989-5333 or send us a message.