Updated: May 19, 2020
What are Mobile Home Parks (MHPs)?
Mobile/Manufactured Home Parks (MHPs) are residential communities of affordable housing. Roughly 20 million Americans live in a manufactured housing community (8% of the U.S. population based on data from the US Census Bureau).
An MHP investor owns the land and infrastructure of the property (e.g., streets, utility hook-ups, and common areas). Park residents (tenants) pay the owners “pad” rent for the land and infrastructure, but typically own their own manufactured homes (“mobile homes”).
Figure 1: US Mobile Home Density
Why Mobile Home Parks?
To quote value investing legend Warren Buffett...
“Investing is laying out cash now to get some more back in the future”.
MHPs are incredibly efficient at accomplishing this goal.
This white paper will begin by highlighting the merits of MHP Investments. Next, it will walk through a detailed, but simplified case study for Forcing Appreciation on an MHP. Then, it will articulate a conservative framework for projecting returns of a diversified MHP portfolio. Last, it will delve into the macroeconomic and demographic trends that will continue to drive MHP returns for the next 10 years and beyond.
To gain access to this detailed whitepaper, please send us a request on our contact us page.
The Damris Capital Team
P.S. We recently wrote a brief update on how the knock-on effects of COVID-19 will impact Mobile Home Park Investment performance in the future.