Why 2017 Is The Year Of The Mobile Home Park

NuWire Investor ^ | February 11, 2017 | Frank Rolfe

[2ndDivisionVet]

The mobile home park has been around as a real estate sector for over half a century. However, it has remained in complete obscurity except for a few lucky investors and such heavyweights as Sam Zell. But 2017 is the year in which mobile home parks will finally be identified for the wonderful business models that they are, as well as the prime solution to the affordable housing crisis in America. And this attention is coming from a number of sources.

The U.S. government

After being ignored by the Federal Government for the past 50 years, that period of silence is ending. In 2016, Congress passed H.R. 3700, which will allow Section 8 vouchers to be used to buy mobile homes beginning in mid-2017. That’s a huge step, as there are roughly as many people in Section 8 apartments in the U.S. as there are in all of the mobile home parks in the U.S. combined. In addition, Fannie Mae and Freddie Mac have introduced new programs to finance mobile home parks that are more attractive than any other offering. Finally, there is talk that Fannie Mae and Freddie Mac may start working on making it easier for first-time homebuyers to buy a mobile home, by taking a more active role in re-purchasing these loans. It’s a great year for the industry legislatively.

The media

Although the media has for decades relegated the very concept of the mobile home park as something to ridicule – through such shows as COPS, Myrtle Manor and Trailer Park Boys – that attitude is shifting as a result of the very serious issue of housing those of lesser incomes. The affordable housing crisis in the U.S. is a huge news story, and the nation’s newspapers, magazines, television stations and on-line sources are beginning to look past those old stereotypes and see the bigger story: that mobile home parks allow people to be homeowners and have a nice yard and neighborhood for a fraction of the price of single-family and multi-family options.

Private investment groups

There were three $2 billion transactions in the mobile home park sector in 2016: 1) the sale of Carefree to SUN (a U.S. REIT) 2) the sale of Northstar to Brookfield (a Canadian REIT) and 3) the sale of YES to GIC (the sovereign nation fund of Singapore). Clearly, the mobile home park industry is poised for massive consolidation. The Carlyle Group – the largest private equity group in the U.S. – already owns over 3,000 lots and is buying more. These transactions give incredible credibility to the industry and helps it become more mainstream.

Conclusion

2017 is looking to be a pivotal year for the mobile home park industry. It already has the highest yields of any form of real estate, but it has long lacked respect. This year that missing element is coming into focus, and it’s an exciting time to be involved in the birth of a mainstream real estate investment arena. If you are not currently investing in mobile home parks, you should definitely investigate this opportunity before it’s too late.

[freepertoo]

There are some fantastic mobile home parks for seniors. I am debating whether to buy a mobile home in such a community when I retire in a few years or remain in the home I currently own. The only thing stopping me now is the “stigma” of owning a mobile home. That, I realize, is conceited, prideful, and not a valid excuse. Still mulling it over.

[Jimmy Valentine]

Yikes!

[Hillarys Gate Cult]

Like this guy?

https://www.youtube.com/watch?v=LiqSjpmjVHg

[Hillarys Gate Cult]

http://izquotes.com/quote/278442

[Hardastarboard]

I live in a van, down by the river.

This thread reminds me of a joke. How are a divorce in Arkansas and a tornado alike?

Either way, somebody loses a house trailer.

[Hillarys Gate Cult]

Mobile home living in Malibu;

https://www.dailymotion.com/video/x2x1mie_loaded-weapon-camper-scene_fun

https://www.youtube.com/watch?v=XinbkOedYm8

[trebb]

Never have lived in a mobile home but have been in a few very nice ones - some bigger than a lot of houses as they get doubled/tripled up and put on solid bases at a fraction of the cost of a stick-built home.

[exbrit]

I live in a manufactured home, have done since 1996, rural area with acreage, barn, horses, etc. Really have had no complaints about it.

[snoringbear]

“How many here live in a manufactured home?”

Here in Texas a lot of guys working in consruction, oil patch, wind generators, etc, buy TT’s or RV’s and move them from job to job. Being that many of these guys are on per-diem by their employers they are able to live rent free and build an investment at the same time. Smart if you ask me.

[Undecided 2012]

i live in rural East Texas and am shocked at how many people live in RVs on a permanent basis. Actually 2 new RV parks opened a few miles from here and filled up real fast.

[BTCM]

section 8 housing is directly related to the old army section 8 discharge-—the one for the mentally challenged.

[kanawa]

Currently living in Ontario. Bought 50 acres of undeveloped land 6 years ago in New Brunswick, about 1000 miles from where I am now. Been working and saving to get ready to head that way not for retirement but for redirection and rejuvenation. Damned if I'm going to sit around here in a puny bachelor apartment waiting to die.

I needed something there to transition to while I work on developing my land. I looked into mobile home communities but the big drawback for me was that I wouldn't own the land but rather lease it. The least expensive I found was $250/mth. Now that's 3000/year and if I stay there 10 years that's 30,000 bucks ~poof gone~ with nothing to show for it.

Kept looking and found a mobile home out in the country on its own 1/2 acre of land. Went to look at it last weekend. The asking price was 36.9K, I was thinking of offering 35K but luckily didn't blurt out an offer....

It has a deck out back and large backyard which is very important to me at this time. My dog, Sam turned 15 last August and in the last few months has begun to decline. He has to wear pants and a pad because he can't hold his water so well anymore and he seems confused at times. It hasn't been easy on either one of us. I really want to get him down there and give him one more good spring/summer/fall before the end. I want him to have the deck and the yard so he can go outside, lay in and enjoy the sun and breeze, where he can drink as much water as he wants and pee whenever and wherever he wants.

When fall begins to give way to winter and if he is still alive I must do the right thing and let him go. I'll be able to bury him in a special spot on my 50 acres where I can go to remember him.

Anyway, the property looked good. Needs a little TLC but nothing that was a deal breaker and I was prepared to make my offer. Before I could the real estate guy says 'look I'll be straight with you, the owners want a quick sale and will take 27K for it'...almost 10K less than the listing price. Well, that certainly sweetened the deal for me and I went for it. We're in the process of dotting the 'i's and crossing the 't's. I asked for a closing date of Mar 29, my birthday is the next day and I thought that would be a great present for me!

This is also on the property and will be included...

I'm thinking I can haul this to my 50 acres and it'll give me shelter while I work on developing the land.

[snoringbear]

"i live in rural East Texas and am shocked at how many people live in RVs on a permanent basis. Actually 2 new RV parks opened a few miles from here and filled up real fast." Yup, for sure. I have a 25' TT and enjoy camping. Have a daughter who lives in Midland, Tx (epicenter of Permian Basin) and awhile back decided to go visit and pull my TT so to stay in while visiting. Dumb idea. All the privately owned RV parks in the area were full. Had to go on to Monahans State Park which was about 100 miles west. Visited a couple days and then went on to Big Bend. Btw, stayed at Maverick Ranch RV Park in Lajitas, really nice, next door to the resort. Anyway.... Nowadays, it pays to call ahead 😏

[ez]

I purchased an old 1970 mobile home on 1/3 of an acre back in 2006 for $16k. I immediately ripped the tin siding off and replaced all the trifold windows on the windy West side, the replaced with T111. When the wind blew you could watch the curtains move.
Now I am going through and completely remodeling it one room at a time and will have everything the way I want by the time I retire. Paid it off in just 4 years and no mortgage since.
Some folks around here buy these old units and put a pole barn roof over the top and then rebuild underneath.
It’s an inexpensive way to own your own property and save thousands in mortgage interest and it’s a lot of fun designing the remodeled rooms also.

[Chickensoup]

A lot of people buy a mobile home on land

Then they build the house they want out back while living in the mobile and just rig the already present well and septic to the new house.

Then they sell the mobile

[chicagolady]

I do 3 bdr 2 baths 1664 sqr feet everyone who visits thinks it is gorgeous! Fire place deck. Track lighting throughout

[weezel]

I do. I used to deal with a lot of mobile home parks too, as service manager for mobile home dealerships.I know about mobile home parks and my best advice is, should you think of investing in one, make it a lot only park as opposed to having mobile homes for rent. When people own their own, they make better tenants. PLUS, if they dont pay their rent, you can evict them and keep the home.This is much more incentive for them to pay up!

And as I said, I live in a double wide on 10 acres of land. I love it.

[TalBlack]

...I just have to wonder who benefits...

It reads, to me, like some investors bought themselves some media.

[redfreedom]

We lived in several Mobile Home Parks during our early years.

Our last park was very upscale. Paved/curbed streets, conventional garages, strict rules on maintenance, appearance, age & type of home, pets, fences and vehicles to name a few.

What we found in these trailer courts, all of them, is the down to earth friendliness of all. Few cliques, if any. Little to no arrogance. Very helpful neighbors.

We never lived in a trashy one, full of junk cars, dilapidated homes, garbage all over, drug dealers etc.

[suthener]

After my recent divorce and in preparation for retirement, I am looking for a small, cheap place with a little land. A mobile home would not be a disqualification, but things would have to be very desperate for me to live in a mobile home park.