A growing market
Like I said, before we chose MHPs, we looked at a lot of data to determine what Real Estate Investment strategy was the best for us. From the get go, we’ve recognized a few social trends that make a good case for Mobile Home Park investing. They are as follows:
- America is getting poorer (source)
- Most americans make less than $30,000 a year (source)
- 15% of americans are older than 65 (source)
If the market wasn’t enough, we had another source that kind of confirm the same tendency, a wise man who said “you will always have the poor with you”. How true that is.
Cost of Living — Rent
Take a look at rental data…
How can a family that makes less than $30K afford to pay $10K a year on rent alone? They can’t.
No wonder so many people live in apartments without being able to pay rent (that means that there are many investors that lose money on apartments because their renters are getting a free pass).
Advantages of Mobile Homes over brick
When you are in the lowest strata of society, $100 a month can make a huge difference. So what’s better in that situation… a studio for $1000 a month, or a 2 bedroom 1 bathroom mobile home for say $350 a month?
The mobile home can offer:
- Bigger dwelling space
- Rock bottom prices
- A yard where children can play
Limitless Demand
From an investor prospective that means that the demand for mobile homes is virtually unlimited, since there’s virtually no competition in that market. Think about it… apartments are very unlikely to slash their prices by 75 or even 80%… and what else can you get that keeps you warm in the winter and cool in the summer for less than $500 a month?
