Mobile home parks, or trailer parks, are temporary or permanent areas for mobile homes and travel trailers. They are more profoundly known in corporate America as “manufactured housing”.
Mobile homes provide the largest inventory of unsubsidized, affordable housing in the United States. Mobile home parks offer low-cost housing as well as a quick and easy solution when the occupants need to move to a new area.
They first came about after World War 2, when there was a high demand for quick, cheap housing among veterans returning home from the war. Today, 70% of the homes sold for under $125,000 are mobile homes and an estimated 20 million Americans live in mobile home parks.
How Mobile Home Parks Work
A mobile park homeowner acts as a landlord, renting out small lots to others. Investors can therefore choose to purchase the entire mobile home park and then lease them out to residents who are either mobile homeowners or renters of mobile homes.
Only about 20% of mobile home parks in the United States are professionally owned, which leaves a vast bulk of the market open to investors looking to diversify their investment portfolios.
If you are looking for mobile home parks for sale wa, here are some of the benefits you can look forward to:
They Are Highly Affordable
A mobile home park for sale WA has a low cost per unit, meaning you can invest in multiple units for a small amount of money. In fact, mobile home parks offer the most affordable investment per unit of any real estate class.
Low Maintenance Costs
By their very nature, investing in mobile home parks requires low involvement. Instead of the landlord, it is the owner who repairs and maintains the property. The mobile home park owner’s upkeep of the park is also considerably less than the upkeep of an apartment building.
They Have High Demand
The demand for mobile home parks is quite high, yet new mobile parks are rarely developed due to the government’s zoning changes which pose a challenge. Mobile homes offer a solution to the affordable housing deficit, which will likely lead to an increase in their demand in the near future.
Have A Low Turnover
Tenant turnover is not an issue with mobile home parks as compared to multi-family units. This is because it costs the tenant(s) thousands of dollars to move their home out of the park.
Tenants typically plan to stay for at least five years, and when they do move out, they often sell their mobile homes, which allows the landlord to increase the rent of the vacant lot.
Make the Wiser Investment
With mobile home parks providing an annual rate of 4%, mobile park homes remain the most profitable and pocket-friendly housing solution in the United States. Owing to the high prices of purchase, construction, and maintenance, traditional permanent houses are fast losing their grip on the property market. Invest in mobile home parks in Washington state and reap the benefits of this lucrative enterprise.