Recession-Resistant Property Types Worth Considering:

[Mohamed Youssef]

With economic uncertainty making headlines again, I've been researching truly recession-resistant property types beyond the usual suspects.

• - Mobile home parks continue to demonstrate remarkable stability. Unlike apartment tenants who might downsize during tough times, mobile home residents rarely move due to the $5-10K relocation cost of their homes. One investor in our network shared that their collections remained above 95% even during 2008-2009.
  
• - Self-storage has evolved from being recession-resistant to actually benefiting during downturns. As people downsize housing, demand for storage increases. The operational simplicity (minimal staff, low maintenance) creates impressive cash flow protection.
  
• - Medical office properties with long-term leases to healthcare systems offer another layer of protection. These tenants invest heavily in specialized buildouts and equipment, making them unlikely to relocate even when budgets tighten.

Less obvious: car washes. People still maintain vehicles during economic slowdowns but might switch from professional detailing to automated washes. Several express car wash chains have shown remarkable growth during previous contractions.

What recession-resistant properties are you considering for your portfolio? Is anyone having success with niche asset classes not mentioned here?

[Philip Barr]

These are great tips, thank you for the information.

For self-storage, it is often recommended to have the real estate in its own LLC to protect from liability from the property. The actual business side should be in its own LLC or Corporation, with the appropriate taxation for the active business. That way, you can separate out the liabilities of the property and the business, while also bringing in some tax savings.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.