Mobile homes and manufactured housing can make great investments in Boise, as long as you know what you’re looking for and how to set yourself up for success. If you’ve never invested in a mobile home park before, you need to be prepared for the unique challenges that come with these properties.
The rewards far outweigh those challenges. If you’re willing to provide well-maintained, attractive homes in these communities, you will find you can earn some steady cash flow with long-term tenants.
Here are some of the things we’ve learned about this market in our years as expert Boise property managers.
How to Start Investing in Mobile Homes
As with any investment, you need to define your investment goals before you start buying up properties. Have a plan for how your mobile home park investments can help you achieve your financial and investment goals.
Once you are comfortable that mobile home parks in Boise fit into your investment strategy, you need to come up with some criteria so you know exactly what you’re looking for. A lot of institutional investors have taken an interest in these types of investments, so competition is actually pretty intense. You’ll need to be ready to seize an opportunity when it comes along.
Choosing a Mobile Home Park
Some of the early questions you’ll have to ask yourself include:
- How large of a mobile home park am I willing to buy?
- Where and how will I finance my purchase?
- Who will my ideal tenants be?
- What is my risk tolerance?
Understanding how to value a mobile home park is an important part of choosing assets and negotiating deals. You’ll need to think about whether you will rent lots to people who own their mobile homes or if you’re going to rent out the mobile homes themselves. This will impact your financing, your rental values, and your ultimate ROI.
Benefits to Mobile Home Park Investments
There is a growing demand for inexpensive housing, and mobile homes are an attractive option for people who can’t afford to buy a home or pay the high rents found throughout Boise. It’s also become an especially attractive option for active adults who are ready to retire and not interested in paying for or maintaining the large homes they once owned.
You have more control of rental price when it comes to renting out mobile homes, and the income is reliable and consistent. These investments are able to provide positive cash flow right away, which is hard to do with other investments. The stable cash flow generated by mobile home parks reduces your risk as an investor. There’s lower tenant turnover and this type of investment property is going to thrive even during recessions and periods of economic uncertainty.
The most important thing to remember is that you have to provide a well-maintained space. If you’re not willing to provide a safe, attractive, and functional property, you’re not going to make any money as an investor.
We can help you invest in mobile home parks and manufactured residential real estate, and we’re licensed to rent them out. For more information that matches your specific Boise investment property goals, contact us at Wave Property Management.
Wave Property Management is a full-service leasing and management company serving Boise as well as nearby communities such as Meridian, Garden City, Nampa, Mountain Home, and Caldwell. We work with new rental property owners as well as established investors with growing real estate portfolios.