Manufactured/Mobile Home and RV Park Investing

Member since 2023 · 19 posts · 9 votes

I'm eager to gain insights from Manufactured/Mobile/RV Home Community investors and developers regarding the current economic climate. As affordable housing remains a critical concern, these housing options have a significant history of providing value to tenants and homeowners. I believe they'll continue to be relevant for both homeowners and tenants as housing costs are high.

Your thoughts on this investment landscape would be greatly appreciated!

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Logan M.

Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes

I would put Mobile Home Park investing up against any other asset class.

You tell me what other asset you can rent land to someone, have nearly a guaranteed tenant for decades and you can buy many communities for almost nothing.

Of the eight communities I have taken down 6 were seller-financed and the other two were a great deal. Of the 6 seller financed, 3 were nothing-down purchases.

YOU CAN'T BEAT IT!

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Rachel H.
San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
3y
@Andrew Chime Many homeowners who buy in this niche tend to know others like family members and friends who do the same. Usually, it's generations of families and friends of families who tend to buy when it comes to manufactured housing.
Another new area are tiny homes which is more of an urban play towards smaller-sized households and those looking to downsize. I think this is a new and growing area for the future in terms of affordable housing.
Hope that helps!
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Andrew Keel
Specialist · Orlando · Member since 2019 · 10 posts · 5 votes
3y
The mobile home park asset class indeed holds promise in our current housing landscape based on how it has performed during previous recessionary cycles. Here are some key insights in my experience:

Steady Demand: The ongoing need for affordable housing tends to create consistent demand for these communities even during recessions, given the historically lower rental amounts in comparison to other multi-family investments.

Resilience: Even during economic downturns, these communities tend to remain attractive due to their affordability. Also they have maintained consistent NOI growth even during downturns outsizing many other asset classes.

Tax Advantages: Mobile Home Parks often offer tax advantages through depreciation deductions, 1031 exchanges, favorable capital gains treatment, and deductible expenses to name a few.

Scalability: Mobile home park investments typically offer opportunities to scale your portfolio, diversify holdings, and spread risk across multiple properties in multiple markets since they can be easier to manage remotely if you have enough scale for a team.

Low Operating Costs: Operating and maintenance costs for mobile home parks are generally lower than for traditional apartment complexes or single-family homes.

Investing both actively and passively in this asset class can potentially provide both financial returns and a valuable contribution to addressing the affordable housing crisis. Success is often dependent on a combination of market knowledge and effective management practices, which typically comes from experience in my opinion.

Best of luck and don’t hesitate to reach out if you have any questions!

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Logan M.
Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
3y
I would put Mobile Home Park investing up against any other asset class.
You tell me what other asset you can rent land to someone, have nearly a guaranteed tenant for decades and you can buy many communities for almost nothing.
Of the eight communities I have taken down 6 were seller-financed and the other two were a great deal. Of the 6 seller financed, 3 were nothing-down purchases.

YOU CAN'T BEAT IT!
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Jordan MoorheadBusiness Member
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
3y
@Logan M. love that! We just got our first purchase agreement signed on one in the Louisville metro.
[email protected]512-888-9122
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Logan M.
Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
3y
Quote from @Jordan Moorhead:

@Logan M. love that! We just got our first purchase agreement signed on one in the Louisville metro.

Feel free to reach out I would love to see how I can help make the process a little smoother for you.
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