Posted by: Daryl & Wendy Ashby | December 2, 2010

Version Mobile

According to a nationwide survey of Canadian attitudes toward recreational property ownership conducted by Angus Reid in May 31, 2010, regional trends in preferred property types noted that 15 per cent of BC residents would purchase a modular home or RV as a second home or vacation property alternative.

Manufactured home parks remain one of the best multi-family real estate investments in commercial real estate today. Manufactured home parks or mobile-home parks are recognized as one of the best forms of affordable housing.

Manufactured homes, which include prefabricated mobile and modular units as well as prefabricated log homes, are customizable from the most basic job site construction office, all the way to elegant, multi-level summer cottages affixed to concrete basement foundations and complete with fine finishings including jacuzzi tubs, vaulted ceilings, carports and decks.

As you think of investments and the ownership of a mobile-home park, recognize that they can provide an investor with a steady long-term and improving cash flow. They can also add to the equity buildup through appreciation and tax savings through depreciation of the improvements.

When considering the purchase of a park, look for an existing park that has been managed poorly over the years, either out of ignorance or apathy, then look for changes that you can make to increase the net operating income and ultimately the value of the asset.

The loss of income from empty or vacant pad can never be recovered. Think out of the box. It may prove prudent for you to purchase newer units from repo companies or work great deals from the manufacturers and then resell them in place and or fully furnished. Keep in mind that there is always the option of renting units out. As summer or vacation rentals, rental rates dramatically increase.

It is not hard to argue the merit of investing in mobile-home parks when you consider Jim Clayton’s sales of Clayton Homes portfolio of mobile-home parks to Warren Buffet in 2003. That transaction netted Clayton $1.7 billion.

As affordable housing diminishes county-wide, mobile home living become a very positive alternative to being a renter.


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