1. Monthly Cash Flow
The way to financial independence is a sound principal; Have assets bringing you more money in than your expenses going out. The following 19 examples of why mobile homes are the number one cash flow vehicle that real estate has to offer. If each mobile home you owned produced a positive cash flow of $400 (after expenses), how many would it take to cover your monthly expenses? Many small mobile home parks average 10-15 homes. That’s a positive cash flow of $4,000 - $6,000 per month. In other words, you could be just 1 deal away.
2. High Rates of Return
If you purchased a mobile home for $8,000 and it gave you a positive cash flow of $400 per month, your annual R.O.I. (Return On Investment) the 1st year would be 60%. That’s an extra $4,800 a year. Where else can you earn such a great R.O.I.? How many Mobile Homes would it take to replace your annual income?
3. Your Initial Investments Back Quickly
The time with which you would receive your investment back on an $8,000 investment with mobile homes is relatively quick. If your monthly cash flow were $400 it would only take 20 months of rent collection to break even. After your Mobile Home Investment breaks even, you are now earning infinite returns. Compare a measly 20 months to that of a single family home and you will be blown away by the difference.
4. Smaller Investments = Less Risk
You’ve probably heard horror stories of hard working people losing their entire life savings because of one bad investment. Or how about the not so funny joke of calling your 401k now a “201k”? If you had $80,000 to invest you could instantly diversify your real estate portfolio using mobile homes. Each could be bringing you a high yield to your portfolio. Financial advisors spread your investments over a variation of funds to help eliminate risk. Consider Mobile Homes as a great way to diversify your real estate portfolio.
5. Multiple Exit Strategies
With Investments at low costs and high yields, Mobile Homes allow more flexibility with how to make money on the backend. Flipping individual mobile homes, flipping entire mobile home parks, seller-financing strategies, selling notes, lease option; rent to own and renting for cash flow are easily accomplishable (and profitable) options with Mobile Homes. Many Real Estate investors initially invest to make a quick flip. When things don’t go as planned they have to resort to other strategies that may not be as profitable because they have to much invested in the property, or a high financed mortgage limits their cash flow. This is not the case with mobile homes and as you explore different exit strategies you may find not just one, but a few that you feel comfortable with.
6. Less Red Tape
Tired of waiting on “short sales”? Having trouble tracking down the realtor who listed that REO property that’s been sitting for months? Have the banks been beating around the bush on your offers? You will find that with mobile homes you are dealing with real people, not institutions.
The demand for affordable housing is higher then it’s ever been. According to the government agency H.U.D. (Housing and Urban Development), A family with one full time worker earning the minimum wage cannot afford the local fair market rent for a two bedroom apartment anywhere in the United States.
8. Low Vacancy Rates
From our experience, we have found that vacancy rates with mobile homes have consistently been lower than that of single-family homes. When buying low, it allows us to rent low to meet the need for affordable housing. Buy Low, Rent Low, Still get High Returns.
9. Long Term Tenants
When we say long-term tenants, it’s not that our Mobile Home Tenants sign long-term leases. They simply just stay longer. What’s the science behind it? Not really sure if there is one. Mobile Home tenants are usually happy and complacent with their current living arrangements.
10. Energy Efficient
With the cost of Electricity and Water on the rise, the desire for energy efficient housing is growing. The utility costs will obviously vary depending on the part of the country your Mobile Home is located. However, its easy to say that window unit A/C will produce a smaller electric bill than a large outdoor unit. Not to mention much cheaper to replace.