Self Storage vs Mobile Home Parks

[Lionel Henderson]

Hey BP family!  I wanted to reach out to the community to ask I feel like a question that has been asked multiple times by those investors wanting to expand into bigger and higher cash flowing markets. Self storage versus mobile home parks I want to get everybody’s opinion because it something I am diving deep in at this point but having never done it i’d like to hear from those who have hopefully done both and which direction they recommend to go. I’m very curious about getting funding for both types of investment deals. I’ve got cash But would love to continue to leverage I need to scale is that possible with either of these types of investments. I would love to hear from all of you thank you! 

[Mario Dattilo]

@Lionel Henderson something to consider is that there is a huge barrier to entry for new Mobile home parks. When you buy one you are not going to be concerned about additional supply coming in and decreasing your occupancy. If anything you may see decreasing supply as competing parks get redeveloped into other property types.

Self storage on the other hand has the supply risk where a new facility can go in down the street and pull your occupancy down while they lease up for the next year or two.

We own both mobile home parks and self storage but one reason we have been much more aggressive in buying MHP is for this reason. Demand is getting higher and supply is decreasing. Hope this helps.