Can anyone comment on the typical turn over in a moble home park? On both single and double wides if it makes a difference? To me it seems that turn over would be less than low income apartment investments. I feel like a moble home to a tenant feels more like ‘home’ than an apartment in a city. Thanks in advance.
newby101,
In my experience (over 20 MHPs - several apartment buildings) I have noticed that with mobile home parks there is less turn-over if the resident in a MHP is a homeowner, however if the resident of a MHP is renting their home I find that the turn-over is about the same as apartments. Some people like to say it is the Pride of Ownership that keeps them there, I think that it is because the homeowner can not afford to move their homes and they are not able to sell them for a price they think is fair.
Richard Stephens
Thanks Richard. So whats the catch with moble home park investing? The rate of return is high, exceeding most multi-family apartments. In apartments with comparable returns, i’ve seen problems such as trouble collecting rents, vacancys, turn over, war zones, etc. Thanks again.
newby101,
There no real catch. The reason more people do not invest in them is because of the lack of knowledge about them. As far as collections go, it has advantages when the homeowner does not pay and the eviction is done. In most cases a landlord will at least get posession of the home and has more options to recover what is owed to them.
Richard Stephens
Thanks Richard. This has been very helpful.