You may be wondering whether to buy a mobile home park or an apartment complex for your real estate investment. Which one is best for you?
We have owned both and I want to tell you, there is no comparison! At one time, we had 5 mobile home parks and one 22 unit apartment complex. After that experience, we have never been interested in apartments again! There are many reasons, but I have tried to classify some of the main ones.
Your initial investment should be a lot less with a mobile home park. You are going to pay more for apartment buildings. Of course, specific properties and locations can be the exception. But as a general rule, you will get a better deal on a mobile home park.
We are always looking for tax breaks. We have found that depreciation on a mobile home park is much better than apartments. Here is the reason. Our current tax laws require us to depreciate a building over 27 1/2 years. Land improvements, however, can be put on a much shorter schedule. Depending on the specific improvement, the schedule is 5, 10, or 15 years. Here is what this means. If you pour new concrete patios, pave your streets, or put a wall around your property, you will be depreciating those improvements much faster than a permanent apartment building.
Mobile Home Rentals
If you are looking at mobile homes to use as rentals, again, your investment will be a lot less. We routinely buy beautiful mobile homes for very little money (we share more about where we find the real bargains inside Mobile Home Park Classroom).
Mobile homes are easier to repair than apartments. Plumbing is typically under the home whereas apartments are constructed with pipes in a floor or in the walls. Now, it is not fun to have to repair a leaking pipe under a mobile home, but the walls do not have to be torn out, causing a lot more expense.
If you are only renting spaces, your maintenance is quite minimal.
We have mobile home owners who have lived in our parks for years and have no intention of moving. It is expensive to move a mobile home, so people typically just sell them in the park. We usually buy them and teach you how in the course.
Apartment tenants move much more often. So, for better and more stable income, you cannot beat a mobile home park. Of course, you want to screen your tenants carefully so they will be good neighbors for years to come. Our training on how to screen your applicants will be a great help to you.
Which One Will You Choose?
Our program teaches you how to acquire and manage all aspects of a mobile home park. Most of our topics will also apply to apartments. Whichever you choose, be sure to watch this:
We are here to share our expertise with you and help you succeed in this great business!