AFFORDABLE HOUSING SOLUTION
20% of Americans earn less than $20,000 per year and lack of affordable housing is a major problem. Mobile home parks offer a solution.
$150000000
In Closed Sales
How Can We Help You?
Mike will go through your investment experience and your operational background to identify a property that meets your expectations and provides the highest probability of success.
Mike will work through the numbers with you step-by-step and help you to arrive at a price that meets your expectations and aligns with the current market environment.
Why Mobile Home Parks?
DECREASING SUPPY,
INCREASING DEMAND
As the need for affordable housing increases, the supply of mobile home parks is decreasing. There are approximately 44,000 mobile home parks with the least 4 units in the United States, and every year about 1% of those mobile home parks are converted into other developments.
RECESSION
RESISTANT
In the event of a recession, higher end apartments and single-family homes are more likely to feel the impact, whereas lower-priced homes such as mobile homes should remain flat or potentially even increase due to increased demand.
STABLE,
PREDICTABLE EXPENSES
Maintenance costs for mobile home parks are approximately 5% of revenue. This is because tenants who own their own homes assume responsibility for maintenance and repairs of their homes along with managing their own utility payments.
LOW
TENANT TURNOVER
Many residents own their own homes, and the cost of moving their home can be expensive ($5k-$10k), so tenant turnover tends to be low.
NOI
GROWTH
Value-add through in-fill, bringing up to date deferred maintenance, implementing automated and energy efficient processes rent increases and improving the overall living environment are all factors that can significantly increase NOI.
HIGH BARRIOR
TO ENTRY
The data analysis and underwriting process for mobile home parks is time-intensive, creating a low competition environment for investors.
MOM & POP
OWNERSHIP
Of the approximately 44,000 mobile home parks in the United States, roughly 40,000 are run by mom-and-pop ownership. Many of these owners are not keeping up with quality maintenance of the living environments, providing plenty of opportunity for improvement.
