Why Investors Buy Mobile Home Parks

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Investors Buy Mobile Home Parks For Low Cost of Entry & Favorable Financing

One of the most compelling reasons why investors buy mobile home parks is the relatively low cost of acquisition compared to other commercial properties. While apartment complexes or office buildings may require large capital outlays, mobile home parks often offer lower price points per unit and attractive seller financing opportunities. In fact, many deals are structured with as little as 10-25% down, especially when the seller owns the park outright and is open to seller financing.

Traditional bank loans are also available, though some lenders still consider mobile home parks a “niche” asset. However, agency loans (like those from Fannie Mae and Freddie Mac) are increasingly available for stabilized parks, offering competitive interest rates and longer amortization terms.

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Mobile Home Parks Create Strong Cash Flow

Mobile home parks generate income in two primary ways: lot rent (when residents own their homes and rent the land) and park owned mobile home rentals (when the park owner also owns the mobile homes). Most investors prefer lot rentals because it eliminates repair and maintenance responsibilities while still generating solid monthly revenue. However, park-owned mobile home parks usually have a more significant cash flow, often requiring a lot more effort.

On average, investors can expect cap rates of 7–10%, depending on location and park condition for lot rent parks. The cap rate can grow much higher for park owned parks. Gross income is relatively predictable, especially in parks with long-term tenants and minimal turnover. Unlike apartments, residents rarely move their mobile homes due to the high cost and logistical hassle, which leads to excellent tenant retention.

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Lower Operating Expenses On Mobile Home Parks

One of the most attractive financial elements of owning a mobile home park is the low expense ratio. When tenants own their own homes, the owner’s responsibility is generally limited to maintaining roads, utilities, and common areas. Relatively minimal fixed structures which can lead to a significant increase in insurance and taxes. Unlike that of an apartment complex.

In this model, operating expenses typically fall between 30–40% of gross income—significantly lower than the 50–60% seen in traditional multifamily properties.

The main expenses include:

• Property taxes
• Insurance
• Utility bills (if not passed through)
• Trash collection
• General maintenance
• Property management (if applicable)

Because of this low overhead, mobile home parks often deliver high net operating income (NOI) relative to their purchase price. Another big reason Why Investors Buy Mobile Home Parks.

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Affordable House Is In High Demand

Affordable housing is in short supply across the U.S., and mobile home parks are one of the last bastions of truly affordable living. Yet, new mobile home parks are rarely developed due to zoning restrictions and local opposition. This creates an economic moat: high demand and limited new competition. For investors, that’s a dream scenario.

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Top States Where & Why Investors Buy Mobile Home Parks

While investors buy mobile home parks across the U.S., some states stand out for their market conditions, landlord laws, and growth potential. The top states for mobile home park investment include:

• Texas – Strong economy, population growth, and landlord-friendly laws
• Florida – High demand from retirees and seasonal workers
• Arizona – Low development costs and warm weather appeal
• Georgia – Affordable land, steady demand, and business-friendly environment
• North Carolina – Rapid growth, especially in suburban and rural areas
• Indiana – High yields and relatively low purchase prices
• Ohio – Consistent rental demand and affordable acquisition opportunities

**We Buy Mobile Home Parks throughout the United States**

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Why Investors Buy Mobile Home Parks

Investors buy mobile home parks because they offer something rare in today’s real estate market: low entry costs, high returns, and long-term tenant stability. With financing options improving and demand for affordable housing at an all-time high, the future of mobile home park investing looks stronger than ever. Whether you’re a new investor or a seasoned pro, this asset class deserves a serious look.

Why Investors Buy Mobile Home Parks? Why did you? Are you tired of being a landlord? Have problems with the park? Just looking to cash out? If you have a mobile home parks and are looking to sell it, simple fill out the form below and we will be in touch right away! We buy in all states throughout the USA!