Are you wondering whether a mobile home park or an apartment complex is the best investment for you?
In my view, there is no comparison! We have owned both and now only own mobile home parks. Here are a few of our main reasons:
Permanent buildings always cost more than spaces, so the initial investment should be substantially less with the mobile home park. Location and quality of properties may provide the exception to the rule, but generally the better value will be the mobile home park.
I have made a career of looking for tax breaks, even reading tax manuals as we travel down the highway in our motor home! So I know most of the angles in real estate. Did you know that permanent buildings for residential use must be depreciated over 27.5 years while land improvements are on a 15 year schedule?
Mobile home rentals can substantially boost your income from your park. Even though the homes have to be on the 27.5 year depreciation schedule, you will have a much lower initial investment. New homes cost much less than permanent buildings and there are always bargains out there with used homes.
We have found repairs to be easier with mobile homes. Unlike apartments with plumbing in the walls, mobile homes have the pipes under the home. No walls have to be torn out to repair a water leak.
If you are only renting spaces, your repairs are almost non-existent!
Vacancy rates are another reason to choose mobile home parks over apartments. Mobile home owners who will be renting a space from you face a large moving bill should they wish to relocate to another park. Most will not move as long as you are maintaining a clean and safe environment. If you go the extra mile and develop a community, people will not want to move from your property.
For better and more stable income, the mobile home park wins over apartments.
Careful screening of applicants, good management, and high quality property maintenance are the ingredients you need to have in place for either type of investment. - 31904
In my view, there is no comparison! We have owned both and now only own mobile home parks. Here are a few of our main reasons:
Permanent buildings always cost more than spaces, so the initial investment should be substantially less with the mobile home park. Location and quality of properties may provide the exception to the rule, but generally the better value will be the mobile home park.
I have made a career of looking for tax breaks, even reading tax manuals as we travel down the highway in our motor home! So I know most of the angles in real estate. Did you know that permanent buildings for residential use must be depreciated over 27.5 years while land improvements are on a 15 year schedule?
Mobile home rentals can substantially boost your income from your park. Even though the homes have to be on the 27.5 year depreciation schedule, you will have a much lower initial investment. New homes cost much less than permanent buildings and there are always bargains out there with used homes.
We have found repairs to be easier with mobile homes. Unlike apartments with plumbing in the walls, mobile homes have the pipes under the home. No walls have to be torn out to repair a water leak.
If you are only renting spaces, your repairs are almost non-existent!
Vacancy rates are another reason to choose mobile home parks over apartments. Mobile home owners who will be renting a space from you face a large moving bill should they wish to relocate to another park. Most will not move as long as you are maintaining a clean and safe environment. If you go the extra mile and develop a community, people will not want to move from your property.
For better and more stable income, the mobile home park wins over apartments.
Careful screening of applicants, good management, and high quality property maintenance are the ingredients you need to have in place for either type of investment. - 31904
About the Author:
Our step-by-step instructions and videos apply to many types of rental property management, but we specialize in teaching you how to manage mobile home parks. Visit MobileHomeParkClassroom.com today to see a free video revealing our biggest secret for successful mobile home park property management.
