The Ultimate Guide to Investing in Mobile Home Parks
5 Reasons I'm Investing in Mobile Home Parks in 2022
Merry Christmas and Happy New Year. I’ve been deep in the crypto trenches, and producing near daily content on my YouTube. It’s grown to over 2,000 subscribers already, so thank you!
In today’s article, I’m following up with more detail on my Top 3 Investments of 2022 with a detailed breakdown of the bull case for mobile home parks, and why I’m betting big on them in 2022. (If you’re interested, check the bottom of this email for how to get in touch).
I promised you I’d bring an expert on the show to discuss this subject further. Well, I’m proud to say that guest is my dad, Guy Torelli, an expert in the mobile home space and 35 year real estate veteran.
Here’s our full interview together. Below the main video, I’ve included segmented clips from our interview on various key topics so you can digest bite sized information.
To recap, here are the top 5 reasons I love mobile home parks.
There’s no cash flow like real estate cash flow, and mobile home parks really shine here. If you work with a savvy partner who can find these in a good location, the land is cheap compared to the rents. Multiple homes can fit in a property, allowing for generous cash flow for the owner (that’s me!).
Traditional real estate suffers from high turnover, yet mobile home parks don’t. Since it’s costly to move, a typical mobile home park only has 2% turnover per year. Translation: your property is always rented and cash flowing.
Here’s my dad weighing in on how to evaluate a real estate market, and how he finds the best deals.
Since you as a mobile home park owner merely buy the land and rent it out, the maintenance is very low. This translates into more money in your pocket at the end of the year.
Very Low Supply
Something we all love from the crypto space are assets with a low supply.
Due to zoning laws, mobile home parks are nearly impossible to build (only 50-60 are built per year), and more than that are torn down.
Contrast this to apartment buildings where 350,000 are built every single year.
Mobile home parks offer some of the best tax benefits of any real estate asset class. (NFA, double check with your accountant).
Traditional real estate allows you to depreciate your asset by roughly 3% per year, whereas mobile home parks are upwards of 5%.
Here’s a real life example of how that may look. Let’s suppose your mobile home park is $1,000,000. At 5% depreciation you can write off $50,000 against your income.
If your income is $100,000 per year, suddenly with the depreciation it’s now $50,000. At a 25% marginal tax rate, that’s amounts to $12,500 a year in tax shelter.
Investing in Mobile Home Parks
If you’re interested in learning more about investing in mobile home parks, simply reply to this email to get in touch and we can chat further.
Hope you have an awesome New Year. What’s your resolution?