In this short video, you will learn everything you need to know about mobile home park investing and why it offers superior returns – and lower risk – than all other investment types. At a time when stocks are clearly overvalued, CDs are only treading water with inflation, apartment loans are in default on 8% of all properties, and office, retail, and lodging sectors are collapsing due to the internet, mobile home parks offer a refreshing success story that is completely contrarian and with the deepest “moat” in all of real estate.
Everything You Need To Know About Mobile Home Parks In Less Than 2 Minutes - Transcript
This is a 1996 three-bedroom, two-bath mobile home in one of our mobile home parks. This home is for sale for about $35,000, and if you include the mortgage payment and the lot rent, it'll come in under $1,000 a month. Three-bedroom apartment in the same market, going for about $1,700 a month. Average house in this market is going for nearly $250,000.
Obviously, it's a great value to anyone looking for housing, and it's a much better deal than an apartment, even if it wasn't so much cheaper. You have no neighbors knocking on your walls or ceiling. You've got the ability to park by your front door, and you have a yard, something apartments never provide. And on top of that, you own it.
So you have a permanent home, not some kind of temporary, transient place in some apartment complex. But on top of that, what makes this such a killer investment is that mobile home parks have not been allowed to be built in this market since the 1960s. In fact, that's true all over America. If you want to have a mobile home park today, you'll never get the zoning to do it.
You'll never get the permits. Mobile home parks, therefore, have the biggest moat in all of real estate. And there's no danger from the internet. Unlike retail and office and lodging industries that have been decimated by the ability to meet on Zoom or buy on Amazon or have remote work, mobile home parks offer the most basic commodity on earth: housing. And it does it in a manner that no one can possibly compete with. We all know that when supply and demand is on your side, you always win.
And that's what happens with mobile home parks. You have the ability with a mobile home park to hit a 20% cash-on-cash return, the gold standard of investing. That's what Warren Buffett's lifetime achievement was: 19.8% per year. And to do so in the lowest risk imaginable. Frank Rolfe with mhu.com. Hope you enjoyed this. Talk to you again soon.