Mobile Home parks
The MHP model
With mobile home parks, we own the land, not the homes.
The tenant pays us lot rent to rent a lot in our mobile home park. In exchange, we provide utility hookups for the tenant, a safe environment to live, and a place to park their mobile home.
Mobile home parks are essentially a "parking lot" for their homes.
True affordable housing
A brand new three bedroom two bath mobile home costs around $100,000. Most of the time it is even less!
With lenders, they require only 5% down to purchase a mobile home. So, a family can begin the path to home ownership with a $3,500-$5,000 down payment.
Pictured above is the inside of a new mobile home. It is almost indistinguishable from a traditional stick-built home on the inside.
Apartments vs. Mobile Home Parks
The average apartment rent in America is close to $2,000 a month for a two bedroom. A 3 bedroom 2 bath mobile home can be owned by a tenant for around $1,000 including lot rent in most markets. This is without any government subsidies.
Mobile home parks also offer yards for the tenants, a detached home, and much more freedom compared to an apartment complex.Â
Ask yourself, would you rather live in an crowded apartment or own a new home for half the price?
HIGH DEMAND, LOW SUPPLY
It is nearly impossible to build a new mobile home park because of regulations. Fewer than 20 new mobile home parks are built each year. This means there is constantly a high demand for mobile home parks and the spaces are limited for tenants.
Great locations
Most mobile home parks are built in great locations close to freeways.
When the mobile home park boom happened in the 1950s-1970s, the owners built their parks close to freeways so that travelers would have ease of access to park their homes. Most of these parks were transient and supported what we would call RVs today.
In the 21st century, these mobile home parks have turned to long-term tenancy but have continued to keep the great locations.
Under Market Rents
Most mobile home parks have been managed by the same people or family since they were constructed. These mom-and-pop owners have not raised rent in years.
The average lot rent in America is only around $325 a month.