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Mobile Home Park Investments - Pros and Cons To Mobile Home Park Investing

http://www.REIClub.com - Mobile Home Parks, A Lucrative Real Estate Niche Not Many Investors Know About. Here's What You Need To Know About Investing in a Mobile Home Park...

Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I've got quick video on the pros and cons of mobile home park investing.

It's typical for investors to be turned off by Mobile Homes. They think its dirty, there's trash everywhere, the people you deal with aren't the highest of quality, and the truth is... that just isn't the truth. The opinions you have about mobile homes, good or bad, can be applied equally to residential type properties. It's a matter of perspective.

"One person's trash is another person's treasure..."

If you want to call yourself a TRUE real estate investor you have open your mind to all the potential "cash cow" opportunities in real estate investing.

Understand that mobile homes are not considered real estate, but more personal property, what you are investing in is the land itself, and simply supplying specific amenities.

Types of Mobile Home Parks
- ownership vs rentals or combination

Investing in Mobile Home Parks - Pros
- people always need affordable housing
- simply renting land and utility connections
- lower operating expenses compared to apartments
- high tenant retention and low turn-over - too expensive to move around - $2k-4k
- tenants usually resell the mobile home to another potential tenant
- mobile homes don't disappear overnight without someone knowing
- High referral rates - choose neighbor
- provides steady cashflow
- non-rent revenue - storage, vending, etc...
- rent increases are easier
- Tax benefits you can claim from infrastructure improvements
- high barriers of entry - potential low competition - not likely for a mobile home park to open next door
- Strong buying position - wholesale conditions - cash offers - buy low / sell low/high opportunities

Investing in Mobile Home Parks - Cons
- overcoming the reputation
- hard to find lenders to fund the purchase
- rates for loans higher than traditional home mortgages
- must find a good manager to run the park - onsite and offsite
- cost/difficulty evicting problem tenants AND their homes - deed
- high depreciation - 15 yr vs. 26 yr - find ways to decrease
- zoning restrictions that you have to abide by
- lower quality mobile home parks - require more attention to maintain value

Mobile Home Park investing is not a get rich quick investment, but a source of steady cash flow, and a good way to build equity. The majority of the time they are recession proof, and although the supply of mobile home parks to purchase are limited, there are still many opportunities to get into this business. Like all investments, it's important to perform your necessary due diligence, minimize your risk and plan for the future.

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing.

http://www.youtube.com/watch?v=U7shBgD_oJ0

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http://www.MobileHomeUniversity.com
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