Affordable housing is a legitimate concern in the real estate market. Not only considering when buying for yourself but also thinking of long term rental properties to own as well. Mobile home parks are a two sided coin. On one hand, they are usually fairly easy to obtain properties and most can be acquired for under fifty thousand. On the other hand, depending on the property itself, the city or town may look down on the property for poverty level or crime rates. There are ways that you can invest in mobile home parks to make sure that you are keeping a long term cash flow at hand.
Challenges
There are many challenges that one might face when looking into purchasing a property in a mobile home park. You have to be realistic about where you’re buying and the cultural climate, no matter where you are buying properties. When you are realistic about the cultural climate going into a property then you can prepare yourself for anything that might arise. There are also challenges that arise when trying to create mobile home parks to increase your rental revenue in a certain area. Most cities do not want mobile harm parks because they are within the belief that they bring higher crime rates to the area.
Benefits
There are also many benefits to look into when deciding on purchasing a pre existing or creating a mobile home park for your own benefit. You can use it to your benefit for paying off land, where tenants will pay the land fees while the value of the land will continue to go up. You can aquire a newly renovated mobile home for an average of forty-five thousand and with the ability to rent at two to three times below the market rate, you can usually acquire long term tenants somewhat faster than you can with other properties. This is a great buy for people who are new to the world of buying and renting properties. You go in with less capital than you would for most other properties and can buy multiple at a time.
Conclusion
Mobile home parks, like any other investment have both upsides and downsides. It is about finding the right property or the right land to place the mobile home on. Location has a lot to do with how things will turn out in the long run. If you choose to purchase for an area with a high crime rate then you run the risk of the city not wanting to host any mobile homes at all. You also run the risk of having issues with break ins and crimes of other sorts. On the other hand, if you use the mobile homes to assist in land buys, then you can have the tenant pay the land fees and continue to hold on to the land as the value goes up over the years.
You have to weigh out the positives and the negatives when dealing with mobile homes whether you are purchasing them as rental properties or acquiring them to put onto land that you are buying. If you can find the correct location and the best deals for both the acquisition of the mobile home and the land, they can make for a very lucrative long term deal.