Podcast Episode #3: Mobile Homes, RVs, Campgrounds and Tiny House Communities

 

 

 

Looking at the variations of the mobile home park model, you end up with at least four distinct types of communities — mobile home parks, RV parks, camping grounds and tiny home communities. Some parks end up with a combination of these in a single space, but each type has different nuances.

 

Mobile home parks

Mobile home parks (MHPs) are now typically known as manufactured home communities. They offer a resilient investment since at most parks the tenants own the home, but you own the land, which they lease. This keeps maintenance costs very low, which is a strong draw for investors.

 

RV parks

RV parks have regained popularity with the uptick in motorhome purchases. With this increase, many mobile home parks are converting a portion of their space to accommodate RVs. This can be a smart business choice since most MHP lots that connect to septic are prepped for three-bedroom homes. RVs count as a one-bedroom, so, in theory, you can put three RVs onto one MHP lot and create additional income.

 

Campgrounds

Campgrounds are places for investors who really want a hands-on experience. They’re for people who enjoy camping more than running a straightforward business because yields can get complicated. Not only do you bring in income for tent site rentals, cabin rentals and RV parking, but you’ll most likely have a general store on site as well as activity fees and equipment rentals. There is a lot more upkeep based on the amenities of your location as well.

 

Tiny homes

Connecting tiny homes with MHPs is a model that hasn’t been completely figured out yet. The movement is still new enough that best practices have yet to be established when it comes to incorporating them into an existing park or even creating a separate community. Once a few effective strategies are out there, prepare to see more tiny homes mixed into MHP communities.

 

Play it safe as a first-time investor

With so many options, as a first-time MHP investor, it can feel overwhelming, so it’s best to play it safe and straightforward with your first MHP purchase. The value-adds many parks come with can be tempting, but prove harder to manage, so tread lightly. Learn more about the best beginning investment options in MHPs with Glenn Esterson and Jason Sirotin. Check out the MHP Expert Podcast.

 

Podcast Transcript

Jason Sirotin: Hey, everybody. Welcome to the Mobile Home Expert podcast. I’m Jason Sirotin here with mobile home park expert, Glenn Esterson. Glenn, how are you doing?

Glenn Esterson: I’m doing excellent, thank you.

Jason Sirotin: What we’ve been talking about the last two episodes has been kind of the basis of your book, the Mobile Home Park Manifesto, and today, we’re going to dive into what is chapter seven of the book, and we’re going to touch on some top-level things. We’re not going to go all the way in to what the book does, but we’re going to touch on the top things.

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