The secret is out! The time has come for mobile homes to get the respect they deserve as a passive income stream and building a retirement nest egg. Investing in real estate and building a portfolio of real estate holdings has been the pathway to freedom for savvy investors earning passive income by quietly investing in mobile homes, which offer a very respectable return.
With so many options for investors, from beginners to those ready to begin a chain of mobile home parks, mobile homes offer significant benefits. Read on as we explore these five reasons why Richmond investors are adding mobile homes to their portfolios.
Diversification should be planned for in your real estate portfolio, serving to provide you with several income streams that carry varying degrees of risk. In other words, your eggs are not all in one basket; instead, you are spreading your risks among varying real estate market sectors. For example, Richmond investors are adding mobile homes to their portfolios for this reason. Rents tend to keep pace with inflation, and because mobile homes offer low-cost housing, these holdings are in higher demand in times of economic downturn. Thus, investing in mobile homes allows you to build a safety net against inflation. Not to be left out of growing trends, you will find mobile homes listed on short-term housing sites like Airbnb. This new demand, driven by societal norms, has made contactless check-in and more solitary settings preferable to crowded hotels. Mobile homes offer an affordable option to travelers who prefer a private residence.
Richmond investors are also adding mobile homes to their portfolios because the competition is much less fierce in this market sector. Bidding wars are much less likely to break out over a mobile home. In addition, the small number of like-minded investors who have journeyed into mobile homes may have different goals. So, you may be able to work together, sending each other leads on the mobile homes in which you have no interest. While networking to help grow your business, do not neglect building relationships with the local park managers. Taking the time to get to know them and becoming a reliable vendor will bring you to mind when mobile homes become available, often before being offered to anyone else. Because competition is lower, this also means that more investment opportunities exist to help you grow your portfolio more quickly.
Demand is high for affordable housing, and tenants who occupy mobile homes tend to be more long-term and reliable for Richmond investors adding mobile homes to their portfolios. While traditional home rentals may turn over every year or two, mobile home tenants tend to stay in one place for several years. Within the niche of mobile homes, you can diversify further by owning in both family parks and 55 and older communities. Whether you offer seller financing for the mobile home itself or rent the unit, or you own the mobile home park itself, you will find yourself in a good position as there is a growing trend towards downsizing. Mobile homes are serving to fill this desire. High demand for low-cost housing and lower turnover rates equate to a reliable income stream for years to come.
Another reason Richmond investors are adding mobile homes to their portfolios is their relatively low unit entry cost and the lower overall maintenance costs. In addition, your overall costs are less with mobile home rentals. Longer-term tenants not only provide a dependable monthly cash flow, but you will have fewer turnover expenses, such as replacing carpets or adding a fresh coat of paint, over the years. If you own an entire park, this too is a reasonably low-cost situation; you maintain roads, utilities, and any amenities; the tenants must maintain the mobile home units they own on the land they lease.
When you consider all that mobile homes offer, it makes sense that the most successful Richmond investors are adding these hidden gems to their portfolios. RVA Home Buyers is here to help make it easy for you to take advantage of all this real estate sector has to offer.
Over the years, RVA Home Buyers has built a full-service team of the most reliable professionals in the industry, from inspections to property management and maintenance or repairs, taking on as many of the responsibilities as you wish so that you can enjoy your golden years. With a study inventory of the best mobile homes available in Richmond, RVA Home Buyers can help you get started building your mobile home portfolio. And if you found a deal already, let our team at RVA Home Buyers make sure your investment is sound with no obligation; why not ask RVA Home Buyers any questions or share any concerns you might have about investing in mobile homes. Contact RVA Home Buyers at (804) 420-8515 to learn more!