Despite their often attractive infill locations, many mobile home parks are being redeveloped for other uses, further reducing the number of available parks. This diminishing supply makes existing parks even more valuable.

The demand for affordable housing is on the rise, positioning mobile home parks as a critical resource. As the most cost-effective form of homeownership in a market, they meet an essential need, attracting a steady stream of potential residents. The combination of increasing demand, decreasing supply, and the substantial barriers to new development creates a ‘perfect storm’ that makes mobile home parks highly attractive investment properties. This unique market dynamic ensures a robust investment with potential for significant appreciation and strong returns.

The mobile home park industry is experiencing significant consolidation. Many of these parks were developed between the 1950s and 1980s, and as the original owners retire or pass away, there emerges a pressing need to sell. Traditionally, the industry has been characterized by its antiquated systems and a lack of efficient data.

However, professional investors are now entering the market with the aim to optimize these assets’ performance, thereby enhancing their investment appeal. This shift is increasingly attracting lenders, investors, and supportive services, pushing the industry into maturity. We are in a unique period where there is a finite window before the majority of these communities are owned by professional operators and most of the intrinsic value has been realized, pushing sellers to demand top market prices. This process of consolidation represents a once-in-a-lifetime opportunity that we are actively capitalizing on.

Mobile home parks typically exhibit a lower expense ratio compared to most other property types, a key financial advantage for investors. In mobile home parks, investors own the land and essential infrastructure, as well as any common area amenities, but not the individual homes themselves. Since the homes are usually owned and maintained by the residents, this significantly reduces the overall maintenance and repair responsibilities for the park owner. This unique aspect of the business model not only minimizes operational costs but also enhances profitability by shifting much of the upkeep responsibility to the tenants.

There is an abundance of mobile home parks available below market value right now, offering substantial equity creation opportunities. Often managed as lifestyle businesses, these parks have suffered from minimal reinvestment and maintenance, leading to a decline in property quality and the presence of lower-quality residents.

As professional investors, we leverage these conditions to acquire properties at below-market prices. By addressing deferred maintenance, making physical improvements, and introducing professional management with good customer service, along with implementing other industry best practices, we are able to transform these communities into more desirable living environments. This attracts residents who are willing to pay full market rents. Our strategy not only allows us to purchase these properties at significantly discounted prices but also to enhance the property’s condition, thereby maximizing cash flow and increasing the overall value for our investors.