Why Invest in Manufactured Home Communities?
Higher Cap Rates Than Apartments:
Mobile home communities tend to trade at a capitalization rates (CAP Rates) (net operating income divided by purchase price) anywhere from 2-7 percentage points higher than comparable quality multifamily assets.
Compelling Demand / Supply Imbalance:
Affordable housing is in high demand from young families, middle-aged residents in transition, and seniors on a fixed income.
Barriers to Entry
99% of municipalities nationwide will not issue permits for new mobile home communities. Many have zoning laws that don't allow new manufactured housing communities or make it difficult to develop them.
Tremendous Tax Benefits - Accelerated Depreciation
From an accounting perspective, the majority of a mobile home communities value is comprised of land improvements (roads, underground utilities, and utility lines), which can be depreciated at an accelerated schedule.
No competition from new supply
No competition from new supply – 99% of municipalities will never approve another mobile home park development. If you own one of the few (or only) mobile home communities in town you’re the affordable housing equivalent of Microsoft circa 1997 (monopoly).
Demand for affordable housing is insatiable
51% of U.S. wage earners make less than $30,000 / year. There will always be demand for lower cost housing in this country. We take pride in increasing the supply of quality affordable housing for deserving residents.