Why Invest in Mobile Home Parks?
They are a great land play. As land gets more and more expensive, savvy investors look for ways to cover the costs of holding tracts of land that are “in the way” of growth. The cash flow generated from lot rent, home rent and other income sources in a mobile home park are excellent ways to hold land until the market demands a higher and better use of the land the park occupies. They have barriers to entry. As cities expand, more and more parks are being converted to other types of commercial and residential developments. Simultaneously, local jurisdictions are making it more difficult to get new property zoned for mobile home park use. In areas where zoning isn’t an issue, getting utilities and infrastructure in place to service mobile home lots is becoming more expensive. Affordable housing isneeded in good and bad times. Affordable housing creates a large potential tenant/owner base and ensures demand for owners of parks. Where else can you find housing that still cost $400-$800/mon
