To say that it’s but the food on the table that is adversely affected by the pandemic is a gross understatement. For many Americans, the COVID-19 crisis could endanger also the roof above their heads. Already, an estimated 30 to 40 million Americans are at risk of being evicted from their rented homes as the virus continues to pummel the nation. Right off the bat, this could be the country’s worst housing crisis in its whole history.
But this could be the most opportune time for you as an entrepreneur. As Plato said it best, necessity is the mother of invention. With the current housing scenario, you are looking at a great need which if served could mean a huge market. Indeed, America’s housing crisis could mean greater opportunities for you.
The good news is investing in manufactured homes could prove to be a wise decision on your part. To boot, these modern mobile homes are way cheaper than traditionally-built homes. What’s more, it can be built in no time at all. And yet, if that has your ears standing, there are a lot more reasons why putting your money on manufactured homes is spot on.
Cheaper Cost per Unit
Well, as a businessman, costs run high in looking at the viability of an enterprise. That’s especially true in the time of the virus when cash is king. And this can be a top reason why you should invest in manufactured homes.
Take note that manufactured homes and mobile homes are two different things. Though used interchangeably in modern times, technically a mobile home is an old-type manufactured home. By definition, mobile homes are those built before June 15, 1976. These homes were popular especially after WWII when veterans were met by a shortage of traditional site-built homes. Of course, since mobile homes have been in use since long ago, the name has come to mean all manufactured homes.
In comparison to old mobile homes, today’s manufactured homes have to meet HUD’s manufactured home standards (to which mobile homes of long ago did not). ;
The good thing about it is mobile home parks (MHP) will allow you to acquire more manufactured home units for a far lesser amount of money. Experts detail MHPs are the lowest cost per unit investment compared to other real estate types.
Usually, the park owners do not own the housing units themselves but just rent the land. This means the more housing units you invest in, the better your ROI or return of investment.
Even better, with manufactured home insurance, you can have the cost of perils to a modern-day mobile home such as fires covered. Not only that, but you can also have personal liability damage. Such insurance can lessen the cost of damages caused by possible risks in the future.
If you take a closer look at those millions of Americans that are in danger of being evicted, most of them are of lower-income families. What makes manufactured homes a good alternative is it’s pretty much affordable for renters.
Plus, there are demographics on your side here. We’re talking about baby boomers who have their eyes fixed on affordable housing. The last look about 10,000 baby boomers are set to retire daily. Many of these seniors are without savings, they rely solely on the social security benefit which can be meager.
That goes without saying that more and more people are bound to find manufactured homes as viable living spaces.
Another key parameter for you is looking at the viability of expanding your business in manufactured homes. With that in mind, you should know that many of those who own mobile parks are simple “mom and pop” entrepreneurs. Even when there’s greater interest in these investments these days than before, most owners are not corporations but are small enterprises.
That should promise a greater opportunity for you. What’s more, many of the owners are in their retirement age. Given that, there’s a good chance they’re going to cash out, wanting to find more peace and quiet.
And as these MHP owners are not really professional landlords and business people, keeping these mobile homes in their keep could be a tall order. In the long run, the challenges of marketing and of finding new renters could overwhelm them.
Now assuming you become a mobile home park owner, you get to enjoy perks that are otherwise not available to other ordinary humans; this can be a big one for you.
When that happens, you won’t have to bother yourself with minor home repairs or other overheads. This is for the simple reason that maintaining the manufactured home does not fall on your shoulder. It will fall on the mobile homeowner. As an MHP owner, your responsibility is the upkeep of the park, an insignificant fee compared to the upkeep of the manufactured homes.