The long-standing stigma of mobile homes is slowly fading into the sunset. Mobile homes offer a great chance to diversify your real estate portfolio for a reasonably modest investment. First, however, it is helpful to understand what is involved in this unique market niche to help you save both time and money. The mobile home market is a whole new world for traditional real estate investors; however, advances in mobile home manufacturing bring the two worlds closer through improved technologies and more similar building materials.
Mobile homes offer an extremely affordable housing option, which will always be in demand. Take a moment to review the following five tips for mobile home investors in Covington.
Our first tip for mobile home investors in Covington is to familiarize yourself with the mobile home market and industry. You may wish to diversify into preowned units as well as investing in new models. Next, it’s helpful to understand the different types of ownership and how mobile home parks operate. Typically, there are two types of mobile home parks, a family park or a 55 and older community. Investors can purchase single units, existing mobile home parks, or raw land to develop into a community, which are relatively low-cost to maintain and manage. Land in these parks is either leased or owned by the tenants; however, they hold the mobile home and must meet the park standards for upkeep and repairs. In addition, the community is responsible for utilities, roads, and whatever amenities the park may offer, making this a low-cost investment for the park owner. In some cases, zoning may also allow mobile homes on private land.
As with any real estate investment, our next tip for mobile home investors in Covington is to understand the differences in values you’ll find among mobile homes. Again, remember the adage “location, location, location,” you need to do your research. It’s always best to buy the lowest-priced mobile home in the best community available within your budget. Depending upon the community, there can be a significant difference in values in mobile homes. In addition, the rates within these parks can vary widely based on your site within the park; for example, lakefront homes are more valuable, and the lot rent is higher.
Mobile home investors in Covington need to be selective about the deals they spend time on. For example, you’ll want to inspect used mobile homes for issues in flooring carefully, and those with faulty electrical systems are typically not worth the investment. If you’re purchasing new models, ensure that the dealer is up to speed with local building coats; buying mobile homes from a local dealer will save you a great deal in shipping fees. Finally, if you’re buying a single wide, there should be one title, with the name of the seller you’re dealing with on it, there should be an additional one for each section of the model; walk away if there are any discrepancies with a title. The bottom line is to buy the best available unit at the lowest possible price for the best return on your investment in mobile homes.
If you’d prefer to own your mobile home investment business instead of your business owning you and all of your free time, you need a reliable team. Networking with other like-minded investors and others in the real estate industry is the best resource to find the most dedicated and loyal professionals to become your team members. Mobile home investors in Covington should actively network to expand connections that offer potential leads and build partnerships that can help grow their investment business. You can only do so much yourself; working alone limits your potential in many ways. Working with inexperienced or unlicensed handypersons is a risk and may cost more in damages than you save by cutting corners. While you’re networking, take the time to get to know the park managers; when you’re serious about your mobile home investment business, they’ll call because they know you’ll help keep their vacancy numbers low.
Last but not least, the best tip of all for mobile home investors in Covington is to work with THINK3RE. At THINK3RE, our professional investors live and work here in Covington; they know the mobile home industry well, keeping their fingers on the pulse of the mobile home market. In addition, we take the time to listen at THINK3RE to help you resolve any problems and each your goals. Over the years, we’ve built an experienced team of the most highly trusted experts at THINK3RE that can handle everything for you, from inspection to closing and even managing your tenants, making investing in mobile homes easy. And THINK3RE has a steady inventory of the best mobile homes available right now. Contact THINK3RE at 253-459-5600 to learn more!