What To Remember When Investing in a Mobile Home Park
If you’re looking for a hands-on way to invest in real estate, a mobile home park is a great buy for the money. Depending on the size of the park, you could rake in enough each month to give up the day job within a few years.
Stefan Soloviev reports that mobile home parks could be one of the best real estate investments out there, so long as you keep the property maintained. You could make enough in rent to pay off the equity on your loan early. After that, you’d have a debt-free income for the rest of your life.
Here are some things to remember when investing in a mobile home park.
Mobile Home Parks Are Rarely for Sale
Mobile home parks are such a good investment, people rarely put them on the market, so when you do find one for sale, be sure to see the park in person. Take time to visit with tenants, if possible, and see how well-maintained it is. Check and make sure the lot isn’t sitting on a flood plain and have it professionally inspected before you make a bid.
If You Can’t Find a Park for Sale
You can create your own, but keep in mind that you’ll not only have to have lots but also homes to park on those lots. It could take a considerable amount of money to purchase enough used manufactured homes for your park.
Maintain Short Leases
You want your mobile home park rents to keep in line with inflation, so don’t allow your tenants to lock themselves in for years with a set rent. Short-term leases are best or, if possible, month-to-month leases.
Don’t Forget Maintenance and Utilities
If you plan on including the cost of utilities in your rent, take the total cost and divide it by the number of lots you rent out so that the tenants are paying for the utilities and not you.
Also remember to take into account the costs of maintaining all the buildings in the park, including keeping up a swimming pool, if you have one, and keeping the lawn well-maintained. The appearance of your park is crucial not only for the morale of your tenants but also to draw in new renters, so don’t neglect this crucial aspect.
Keep these tips in mind if you’re considering purchasing a mobile home park. It could be well worth the investment with revenues that will provide for a golden retirement.
