One of the reasons why mobile home parks are such a good investment is low supply (as in supply and demand). Here’s why – it’s difficult to get approval to build a new park and a lot of existing parks get converted to other uses when the mobile home park investors that own them decide to cash in.
Case in Point: Sunshine Village in Palm Springs, FL
The elderly and disabled residents of Sunshine Village — nearly all those living in the decades-old mobile home park — are fretting they might lose their homes to construction of a Walmart.
The Palm Springs Land Development Board voted unanimously Tuesday night to recommend a commercial zoning change to the 18-acre community of about 70 homes on 10th Avenue North. The village council on Thursday is expected to vote on a first reading of the zoning change.
“I am on disability and fixed income,” resident Karren Edgar said. “Where am I going to go?”
Two things in this story are important to notice if you are a mobile home park investor.
First, mobile homes provide affordable housing to people that can’t necessarily afford apartments (supply). Second, mobile home parks are good investments because you don’t often see a new mobile home park being developed and a number of them are taken off the market and converted into other uses when they sell (demand).
