Mobile Home Park Investing for Beginners

MHCI Group • October 15, 2020

You're about to discover what every beginner should know about investing in mobile home parks (MHPs) or now more commonly referred to as Manufactured Housing Communities (MHCs). You'll learn the 2 types of deals, the 4 key demand factors and why you should invest in mobile home parks. You'll also find out the top 3 misconceptions about this commercial property type, 5 major things to look out for before you invest, 3 big pitfalls to steer clear of, how and where to find the best deals and the 3 most common ways to finance your first mobile home park. MHPs often fly under the commercial investing radar but they can be terrific investment opportunities for individual investors like us. Here is mobile home park investing for beginners:

PART 1: 2 Types of and 5 Figures that Demonstrate Demand for Mobile Home Parks

Land Only
Land and Mobile Homes
8.6 Million Mobile Homes in the United States
50,000 Mobile Home Parks
60 Million People Earn $20,000 per Year
$1,000 per month is the average rent for an apartment in the United States
8% of United States Population live in Mobile Home Parks

PART 2: Why Invest in and 3 Misconceptions of Mobile Home Parks

Growing Demand for Affordable Housing
Stable and Predictable
Limited Competition for New Parks
Potentially Higher Returns
Misconception # 1 - Crazy Lazy People live in Mobile Home Parks
Misconception # 2 - Mobile Homes can pull out at anytime
Misconception # 3 - You can't get loans on Mobile Home Parks

PART 3: 5 Tips on What to Look For and 3 BIG No-Nos

Increasing Population Areas
Stay Away from 5 Star Parks
Seek Out Mom and Pop Owned Parks
Minimum 10% Cap Rate
Best deals allow for easy rent increases and cost reduction options abound.
No-No # 1 - Hurricane Zones
No-No # 2 - Park Owned Homes
No-No # 3 - Operating Permit Status Issues

PART 4: How and Where to Find Mobile Home Park Deals

LoopNet.com
MHCIGroup.com
CIMLS.com
MobileHomeParkStore.com
Multimarketbroker.com
Direct Mail Campaign
Of the deals you look at, 20% will be potentially good deals, 30% deals will be marginal deals, 50% will be over priced.

PART 5: 3 Most Common Ways to Finance Your First Mobile Home Park