Mobile Home Park Investors Pros and Cons

[Ryan Groene]

Happy Friday everyone.  

Post about what you think is the best thing about the industry and some not so great things about the industry

For anyone whom is a Mobile Home Park Investor or has thought about Mobile home park investing....Comment on this post and lets connect...

[Mike Dymski]

Pros:

• Strong cash flow
• Major affordable housing shortage in the country
• Barrier to entry - zoning prohibits new parks
• Pride of ownership - the residents own the home
• Lower operating costs - the residents own the home
• Lower touch - the residents own the home
• Sticky residents - costly to move a home
• Easy to raise rents - costly to move a home
• Recession resistant asset class - affordable rent
• Large private equity funds are entering the space - drive prices up
• Mom & pop ownership - opportunities to improve NOI and value
• Lower entry cost per door - less capital needed

Cons:

• Not sexy - smaller resale pool (but that's changing)
• Stigma - some counties try to stop operations (poorly operated parks, criminal activity)
• Stigma - some people don't want to live in one
• Lower credit quality resident
• Less appreciation potential, unless forced
• Niche investment - helps to have scale to properly operate
• Many banks don't understand it - tougher to finance
• Older assets in many cases