Carolyn M. Ley
The Importance Of Renting Trailer Parks Williston ND
People need affordable housing in good neighborhoods with low crime rates: not an easy bill to fill. Investing in trailer parks Williston ND can provide an alternative to apartment buildings that are the standard residential option. It is a way to help people in lower income brackets find suitable life styles while you make a handsome profit.
It is said that a large number of people cannot pay more than $500 on housing, which will not get them a decent place to live, even in Detroit. They may be able to afford this as rent in a mobile park, especially if they own their structure. You can therefore serve a vital community by providing lots with decent adjacent amenities.
What this implies is that the home is not easily movable, or mobile, at the drop of a hat. Instead, they are transported by truck to a given park. It costs as much as $3,000 to relocate so-called mobile homes. They are not RVs.
What you would be dealing with as a park owner is a modular or pre-fab home as the case may be. It is not easy to move but requires trucking to bring it into place, often at a cost of about $3,000. Data shows that people remain in their original location for many years as a result. They don't just turn on a motor and go. Perhaps people are thinking of RV parks where truly mobile vehicles reside, and often for just a few months at a time.
A positive for park investors is that there is limited competition for new developments since there are many barriers to entry to overcome. It is not so easy to enter the fray and gain market share, i. E., rental income. There are zoning ordinances, permits and licenses, and various regulatory requirements that are stumbling blocks to new investors.
Legal issues are not the only heart of the matter. Cash flow is another major concern. You might not break even until all the home lots have been rented. If you are lucky, a half-filled park will do. Those who can afford to wait to build up a good tenant base will profit mightily down the road. This is a deterrent for new investors; so if you are savvy about delayed income, you are ahead of the pack.
The park owners hold no responsibility to maintain the home or unit; they are only required to manage the land and other park associate facilities. This includes road maintenance and associating facility maintenance, such as keeping the community pool clean. And even then, the expenses for those facilities and improvements are depreciable from the tenants living in the units or homes.
Investors like to hear that there is more depreciation involved in owning a park. The reason is that it pertains to roads, utility lines, etc. The areas that are allowable for depreciation are considered land improvements and thus can range over 15 years. This means a greater degree in the early years. It is clear that investing in this real estate income venue is a wise decision for income and growth.