Manufactured homes are becoming more and more popular as a form of homeownership. Hence, mobile homes are in high demand to live. This renaissance, which includes housing affordability and lifestyle options, is taking the place of the previous stigma. This guide provides readers with a novel viewpoint on owning and operating mobile home parks.
Possibility of Owning a Home
In comparison to the typical cost of a manufactured home, which is now estimated to be $62,600, a single-family built home will likely cost roughly $272,200. This price disparity provides first-time home purchasers with a stepping stone as well as more disposable income for lifestyle choices. Therefore, a mobile house requires less money and effort to maintain than standard housing.
THE ADVANTAGES OF OWNING A MOBILE HOME PARK
- Low Turnover and High Demand
Baby boomers, empty nesters, and retirees all find living in affordable mobile homes to be appealing. The population is aging, and more individuals are choosing to spend less money on housing, which is contributing to the strong demand for cheap housing.
The “mobile” dwelling is not actually particularly mobile. It was given that name because of the chasse that was used to deliver the unit. Eighty percent of manufactured homes are reportedly still at the spot where they were first set up because they are expensive and challenging to shift. Occupancy levels in a neighborhood are kept high by this low turnover rate.
- Easy to Maintain
The lot and home are the sole property of the individual homeowner. Roads, amenities, common areas, and any utilities or services offered are all the responsibility of the park owners.
- Possible Financial Gains
As with any investment, there are risks, but buying mobile home parks in Texas or other cities may also bring significant financial rewards, such as:
- Lower price per unit
- Accelerated timeline for depreciation
- Greater capitalization rates than those of multi-family homes
- Several Streams of Income
- Low vacancy rates are accompanied by more quick cash flow
- Less costly to operate than apartments
The chances for revenue streams are on the other side of expenses. Here are some additional potential revenue sources to take into account, assuming your state’s regulations permit it:
- Revenue from laundries
- Renting a clubhouse
- House sales
- Rental houses
- Investment trusts for properties
- Costs associated with having pets
- Rentals of appliances
- Various Niche Markets
If mobile home park ownership interests you, you might want to think about the various specialized markets that are open to you. The most prevalent communities are 55+ communities and all-age parks. State-specific classifications for special use, particular occupancy, and mobile home parks exist. Some states permit a specific percentage of younger owners to reside in senior parks. Some states permit mixed-use classification, including RVs and/or compact homes alongside movers.
To keep prices and vacancies down, it’s crucial to consider all-ages or senior housing, the amenities provided, and the state of the park’s infrastructure. To construct a community and environment to your liking, think about making improvements to the infrastructure and adding new amenities.
Again, any investment carries some risk, and owning mobile home parks in Montana or other towns is no different. This guide discusses the potential advantages, but you should conduct a thorough study and due diligence on all aspects of ownership. Successful ownership of a manufactured home community requires two key elements, excellent onsite management, and top-notch property management software.
Takeaway
For folks who still desire the independence of living in a home — not an apartment — but are seeking an affordable way to achieve it, mobile home parks answer a very important problem. This cost-effective solution may work in your favor!
