Residents are Owners
The most unique characteristic of MHPs is that the residents own the homes. They handle any repairs to their home and pay monthly rent for the lot their home sits on. As homeowners, residents rarely move, resulting in stable cash flow for mobile home park investments.
Demand for mobile homes has never been higher. The trend will continue as affordable housing becomes more scarce and baby boomers retire. Mobile home parks offer a low-cost alternative in an expensive real estate market, and their popularity increases when a recession occurs.
Stable Cash Flow
Due to low tenant turnover and high demand for affordable living, mobile home and RV parks offer more stable cash flow than traditional investments. Regardless of market conditions, they can deliver higher returns with less risk than other types of real estate.
Performance Through Market Cycles
Park performance is not correlated with the stock market, the economy, or the broader real estate market. When everything else is in chaos, mobile home park investments can offer the most predictable cash flow with the least amount of volatility.