with that problem.
So How Do You Make Money in Mobile Home Parks?
Own the pads, rent them out to people and don't own the trailers, just the pads!
Here's an article by Reonomy • Feb 10, 2018 ww.reonomy.com
Investing in Mobile Home Parks Did you know that it’s estimated that roughly 5.6% of the U.S. population— 17.7 million people —presently live in mobile homes? Demand is high, and the commercial real estate community is taking notice. Between their low maintenance, high returns and overall affordability, there’s a strong argument for investing in a mobile home park. Before we dive into why and how to invest in mobile home parks, though, it’s important to understand how they operate. In general, a mobile home park owner simply rents out small pieces of land to others. Investors can purchase the entire mobile home park and lease each pad to residents that either rent or own a mobile home. Mobile home parks provide affordable housing for low-wage earners in the U.S., and with that, also provide stability to owners in the case of a declining or depressed economy. The kicker is that, not only are mobile home parks in demand, but they provide clear returns. So much so that mobile home parks have the highest cap rate of any real estate niche, at roughly 8-12% n y 8-12% nationally.
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