There has always been a negative stigma attached to mobile homes or managed homes. No matter what you choose to call it, these have been a huge part of our history. Although they have always been seen as an indication of failure, these managed homes are now becoming a norm. Here’s a completely unique view that will eliminate the negative light on managed homes.
These mobile homes date back to the early 1500s; back then, they were more commonly known as gypsy wagons. By the late 1700s, the design evolved into covered wagons, and soon after, it expanded to Gold Rush. It’s a pretty old and widespread concept that has started to become more acceptable in recent years.
These were part of the Depression Era as well as WWII veteran housing needs. However, they have become a choice more than a need for home-owners who look for a luxurious lifestyle rather than a big empty house.
In the year 1974, Congress passed the Federal Mobile Home Construction and Safety Act (Title 42 U.S.C., Ch 70). The title was later amended to Federal Manufactured Home Construction and Safety Act (Title 42 U.S.C., Ch 70. This law as there was no stopping these mobile homes, and there was a lapse of safety and security concerning these.
The National Manufactured Housing Construction and Safety Standards are dispensed and implemented by the Housing Development Department (H.U.D.). Along with that, every state has its own laws and regulations to follow.
In late 2000 the manufacture housing climate was a necessity, but lately, it has become a preferred choice by many. Tiny homes or micro-homes, alternative housing, as well as R.V. living comes under these manufactured houses. But there are still some limitations and some criteria to follow in order to design and live in a mobile house.
When you compared the price of and average, single-family house, you are looking at the extravagant price of $272,200, whereas a mobile home costs you $62,600. The difference in price leaves you with a substantial amount to shape your life and career. You also get the home-ownership at a very reasonable price.
Your income may be increasing, but the cost of living is increasing at an even faster rate. Mobile or managed homes give you the housing security family houses lack.
Advantages of Mobile Home Park Ownership
Low Turn-over with high demand
The demand for these mobile home park communities is higher as it is the preferred choice of nesters as well as baby boomers. They can spend less in their retiring years on housing and more on better living. Since the manufactured house isn’t very easy to move, the communities are well placed in their initial position. This low turn-over rate makes it a very profitable arrangement.
As a park owner, your responsibility is to maintain roads, common areas, facilities, as well as other utilities provided to the residents. Compared to complex ownership, this is pretty easy to handle.
Probable Financial Rewards
- Here are the financial benefits that you many enjoy as mobile park owner:
- Subordinate per unit cost
- Devaluation at the fast-tracked schedule
- Advanced capitalization rates
- Low vacancy rates
- Better cash flow
- Lower operational expenses
There are also the niches to consider if you want to get into the market of mobile park ownership. The most profitable niches are the all-age park and the senior parks.
All in all, it’s a good investment, but it has its risk. You will need to do thorough research before making the big leap. It’s a profitable option that is going to be pretty popular in the coming years.