The Basics of Investing In Mobile Homes In Southern California
Mobile Home Park investing is a great business to get into. It seems to be a hidden gem in the real estate investing sector. There are many benefits to mobile home park investing, which we’ll get into later. For now, I wanted to introduce some of the common issues one will run into when investing in a mobile home park. Before we discuss the issues revolving around mobile park investing we will start by giving you a rundown of what exactly mobile home park investing is.
First and foremost, mobile home parks vary in all different locations, sizes, amenities, community centers, etc. There is a lot to account for and take in when you are considering deploying capital into a park. In Southern California, there are over 4800 active mobile home parks today. This can make it tricky when you’re trying to find the best park and biggest return on your investment.
One benefit mobile home park investments have is that instead of purchasing an actual house or apartment complex such as a single-family or multi-family home, you are purchasing the land in which these manufactured homes sit on. Let’s do some basic math to give you an idea. A typical smaller single-family home in California will sell for a few hundred thousand dollars depending on the size and location. A mobile home space can sell for as little as $10,000. Of course, this depends on the park and location. More luxurious mobile home parks can charge much more depending on the park and its current stature.
Due to the smaller investment of around $10,000 per lot, you can purchase many more lots than you can with a single-family home investment. Plus, when a tenant occupies your land they will be paying a “space rent” fee which covers their portion of the park. Tenants and residents are responsible for their mobile home damages and all interior/exterior problems of a mobile home. As an investor or owner of a mobile home park you’ll be in charge of the roads, sidewalks, community centers, pools, spas, banquet centers, etc.. This may seem like a lot, but with a great management company these items can be taken care of on a daily basis to ensure there are never long stretches where the pool is closed, sidewalks closed, and even road closure in the park.
In short, mobile home investing offers tons of advantages in the marketplace. If you’re looking into it, we suggest you jump in with both feet before the opportunity disappears. Thanks for following the blog and we look forward to giving you more content in the near future!