We have recently closed on the sale of the Logan Mobile Home Park in Logan, Utah. The park consisted of a 53 unit mobile home park on 5 acres. It was a unique mobile home park whereas it is situated in a very good area near the local city golf course and baseball fields. The buyer was a local investor and purchased it for cash flow purposes.
We sold another mobile home park investment last month and I included a few thoughts regarding this type of commercial real estate investment. I am including those same comments below:
Several of my clients have been seeking mobile home park investments as an alternative to their typical commercial real estate investments in the last 12 months. Their theory being that because of most cities reluctance to grant zoning for new mobile homes parks, existing parks are experiencing strong occupancies. Unlike most commercial properties, a few vacancies have very little impact on the overall return. It is also a commercial real estate investment type that tends to do better in recessionary economies. The hope is that strong occupancies due to a lack of new supply will provide greater than average rent growth.
The challenge with mobile home park investment is understanding management. There are more nuances dealing with tenants than in traditional properties. Its is also a property type you might not feel proud telling your friends that you own.
If you can get over some of these hurdles there are some real financial advantages. Please feel free to contact me for additional information on the deal points.