10 Jul Is a mobile home park a good property investment?
If you are looking for investment income, multi-family properties, such as mobile home parks, are a good source of potential income to consider. If you purchase a mobile home park, you are buying the land to rent out to people who own mobile homes. As the landowner, you collect a monthly or yearly fee for allowing the residents to park their mobile homes on your property.
Before you decide if a mobile home park is a good property investment for you, there are some pros and cons to consider.
- There is high demand due to the limited number of mobile home parks.
- As the landowner, you are not responsible for repair and maintenance of the mobile homes themselves.
- Since the tenants own their own homes, there is a lower turnover rate.
- Buying the land is a less expensive investment than buying the rental units.
- Tenants may not always keep up with maintenance responsibilities for the mobile homes. If the homes in the park appear in disrepair, it could discourage potential tenants from renting a lot from you.
- You are limited in the income you can earn by the number of rental spaces allowed in the park.
- If the property is not located near desired amenities (access to good schools, shopping and work areas) you may discourage the most desirable tenants.
Not every area will be a good fit for a mobile home park. Mobile home parks are more prevalent in certain areas than others. If you are considering investing in a mobile home park, it is a good idea to research potential markets. Then you can target your advertising to the right population and purchase in the best possible location to attract tenants.
If you are considering investing in a mobile home park, Barsh & Cohen has capable legal experts that can assist you with your closing paperwork. We offer efficient work at affordable prices. Contact us for a consultation.