The price of renting a mobile home is really a steal for people on lower incomes who can’t afford renting regular homes, and don’t have the finances to buy their own mobile home. As an investor you’re doing both the residents and yourself a huge favor when you invest in mobile homes.
Let’s go over 6 advantages of having mobile homes to rent at affordable prices.
#1 – Nearly Everyone Can Afford The Rent
Whether it’s mobile home parks in Los Angeles area or elsewhere in the country, just about everybody can afford the rent on a typical mobile home within a mobile home park. This means renting them out is going to be met with basically no resistance.
The cost of buying or renting a regular house in America these days is simply getting beyond the reach of many people, so the lower rents offered by mobile homeowners is very attractive indeed. You won’t come across too many prospective tenants who’ll say the rent is not affordable.
#2 – It’s Regular Income For You, The Investor
Obviously, investing in property of any kind is all about receiving a positive ROI on that investment, and mobile homes are an easy way to achieve just that.
Let’s look at a scenario. Let’s say you buy an entire mobile home park with 100 mobile homes in it for rent. Not only do you receive the rental income on the homes themselves, but also for the lots they rest on.
This is fantastic cash flow. It’s really an investor’s dream scenario. Every single month money will come flooding into your account from multiple sources, and that brings us onto the next key point.
#3 – The More Mobile Homes You Own, The Lower The Risk
This is a really important point, as investment is not only about profit, but also reducing risks and minimising any reduction or ill effects on cash flow.
While regular property investing in houses and apartments is fine, these types of investment also have an increased risk factor. This is especially true when you only own one or two properties that you are renting out. If a tenant leaves and the property is vacant for a period of time, your cash flow is majorly inhibited.
Not so when you invest in a mobile home parks and have multiple properties bringing in rent all at once. If one or two mobile homes are vacant, you’ll barely even notice a dent in your overall cash flow, as you’ll have dozens (or even hundreds) of other properties bringing in regular income.
#4 – The Occupancy Rates Will Be High
Because of the growing popularity of mobile home living, more and more people are downsizing and looking to move into mobile home parks. Once in, they won’t want to leave for fear of not being able to find a vacancy in another mobile home park.
Mobile homes are in demand, and this spells great news for investors. Occupancy rates will remain high, ensuring a positive ROI and a very stable stream of income.
#5 – Low Maintenance
Both mobile homes and the parks they are in are very low maintenance. As the owner you can hire a management team to take care of the park, its cleaning, maintenance, and the managing of the park and tenants.
Investors can basically be hands off and just enjoy the constant flow of rental income. It was mentioned that occupancy rates will always be high, so there is little chance of any of a disruption in that income.
Management will ensure the park runs smoothly at a minimum cost to you.
#6 – Mobile Home Parks Are A Community
What does this mean for you, the investor?
It means you’ll have happy residents, and happy and contented residents don’t want to pack up and move. That’s good for them and for you.
Mobile home parks are definitely a special kind of community. Neighbors get to know one another, especially if your park has good communal facilities. New friendships are forged. Everyone will take pride in the park and do their part in making it a great place to live.
It’s yet another positive than virtually guarantees close to full occupancy.