Commercial MF vs. Mobile Home Parks vs. Self Storage
The purpose of this post is not to ask a specific question or write about a specific situation/event, but rather to start a general discussion around the three alternative investments named above.
Commerical MF: Diversification, truly passive income for investors, forced appreciation, and economies of scale, to name just a few of many, are very appealing attributes of value-add commercial MF properties. Equity multiples of 2.0x-3.0x (yes, double to triple your money!) over the hold period aren't uncommon. 10% CoC is reasonably achievable. This list goes on. There's a reason why many of the richest people in the world have their hands in commercial MF in one form or another. Check out my blog for deeper thought on the matter:
https://www.biggerpockets.com/blogs/10191/66365-8-...
Mobile Home Parks: If the fact that Warren buffet is one of the single largest holders of mobile home parks in the U.S. doesn't speak volumes, here are some other things to consider: new development on mobile home parks are extremely limited nationwide; costs are typically extremely low relative to other investment options (no dwelling expenses); cost/effort for dwelling owners to leave the lot are high. There's a negative stigma surrounding mobile home parks, but it is my opinion that, while sometimes true, this stigma is generally ill-founded.
Self Storage: Lower development costs often make the break-even point for self storage lower than other alternative investment options. Operational expenses are often lower as well. With the percentage of Americans renting today being relatively high, the demand for self storage is strong. Typical tenant problems are less common than residential properties. That being said, competition is still fierce and an accurate market analysis is still key.
Comment your thoughts on each niche; whether they come in the form of opinion, personal experience, questions for other posters, strengths/weaknesses of one over another, whatever! Just looking to get other BP member insight on these 3 alternative investment options and open up a fun and informative dialogue.
I looked forward to reading everyone's responses!!