How to Successfully Invest in Mobile Home Parks

Everyone wants affordable housing. And the demand never runs out!

Mobile homes are way more affordable than regular housing, and investing in mobile home parks can be a very successful long-term investment, if you do it wisely.

In this episode of the Hidden Money Podcast, we talk with Jarrid Cavanaugh of Affinity Asset Group, whose wide experience with mobile home parks and honest, insightful answers gives us a wealth of information on how to successfully diversify into this very affordable housing solution.

In this episode, we discuss

The importance of having a competent team, managing park-owned homes, and ensuring compliance with local regulations.

Why meeting with city officials, fire marshals, and other local authorities is crucial for gaining support and avoiding operational hurdles.

How previous mismanagement and crime in mobile home parks can create biases against new owners and impact investment outcomes.

Specific examples of operational challenges, such as dealing with squatters and complying with unusual local regulations.

The impact of local landlord laws and the role of law enforcement in managing and maintaining mobile home parks.

Key financial metrics to look for, including below-market rents, park-owned homes, and utility billing strategies to increase Net Operating Income (NOI).

The challenge of high debt rates versus low cap rates, and the competition from large institutional investors and the benefits and strategies of seller-financed deals, especially with mom-and-pop park owners.

The advantages of bonus depreciation and cost segregation, specifically for land improvements and mobile home park infrastructure.

Typical returns on investment, including cash on cash returns, and strategies for reinvesting capital to maximize long-term value.

Jarrid Cavanaugh’s advice on getting started in mobile home park investments, including educational resources and mentorship opportunities.

To Learn More

You can reach out to Jarrid and explore the services his company provides on his website About – Affinity Asset Group or reach out to him via his Instagram handle @jarridcavanaugh

To start using the tax code as a tool to grow your wealth, schedule a call with Pine & Co. CPAs: Consultation (pinecocpas.com)