The benefits To owning a mobile home park are many and much more than you can imagine. Below are some of the best reasons you should want to get a park Mobile home parks create a huge amount of cash flow. The math is straightforward. For those who get a 100-space mobile home park, and the lot rent is 250 a month, then you have got 300,000 a year of cash coming in the door. With an expense ratio which runs between 30% and 40% of the gross profit, the yearly net income is about 200,000 each year. That is lots of cash coming in off only 1 property. In the realm of commercial property, mobile home parks would be the king of cash flow. Mobile home parks pay you twice – once with monthly cash flow and another time with asset appreciation when you go to sell them. The exact same is true on the cost side. Nothing ever happens in a mobile home park.
There are hardly any line items on the market, and those are essentially the exact same every month. These expenses include insurance, property tax, sewer, water, electricity and mowing. Mobile home parks do not expect lots of management attention. Basically, you are renting land and do not need to spend much time watching over what your renters do with this. The renter is responsible for keeping their lot and mowing their grass, so the park owner only has to worry about the entry and the common areas, including a playground. It means you have got a whole lot of spare time on your hands. You may choose your own hours and have a trip if you would like. There are no limitations. That is not to say that you could just purchase a playground, forget about it, and the money goes to your checking account every month – far from it. But with a few smart systems – and the ideal park buy – mobile home park possession is not a time intensive undertaking.
As a result of this, in addition, it makes a fantastic addition to your day job, because it is possible to operate the park at night and on weekends. The mobile home parks are all about affordable housing basically housing for individuals with lower incomes. About 60,000,000 Americans reside on household incomes under 20,000 – that is 20 percent of the complete U.S. population. These people have no hope of owning a detached dwelling aside from a mobile home park. A mobile home can give them privacy, a lawn, a sense of neighborhood. You are really helping people when you supply an excellent mobile home park atmosphere. Think you are doing good once you recycle your newspapers? Consider changing peoples’ lives. The ability to do good when making money is an actual win, and rarely found today.