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.
Knowing that tenants do not readily turnover if they like their location is good news for park owners. This is called tenant consistency and it applies as much to this investment as to traditional multi-family homes. Misconceptions about parks abound. In addition to alleged turnover, there is the issue of a "mobile" home, which is a misused term. It is more aptly called a "manufactured" home.
Investors are sometimes leery of this real estate opportunity because they doubt the consistency of tenants. They expect people to come and go. This is a widespread misconception with little merit. More people stay put in a mobile park than in a traditional multi-family apartment. The word "mobile" is thus a misnomer and a better term would be "manufactured home."
Because of the various legal restrictions across the country, these homes are not easy to develop. There are quite a few obstacles for the people wishing to develop new units from scratch, these include various types of permits or licenses, proper zoning and other types of necessary prerequisites.
Even though, affordable housing is one of the country's biggest problems, it is almost impossible for investors to develop new parks in order to solve this issue. Buying or investing existing parks is low competition for new landowners. Newer homes usually have higher standards than the older ones in terms of appearance, size and overall customer satisfaction. This leads to a reduction on the most units in the depreciation of the rate of value.
Another deterrent to trailer park ownership apart from legal restrictions is the income factor. You want an even revenue stream from reliable tenants. In the beginning, when a park is not full, this stream may be inadequate and you need to have the staying power to wait until expansion is achieved. In the end, you will reap significant rewards, but many investors think only of the here and now. Keeping new parks away means less competition and a greater market share for those who can stay the course.
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.
These park investments are simple, easy and highly profitable. It has been and will stay one of the best income producing businesses of all time. This is because despite the shape of the economy, people will always need affordable housing. The tenants see these units or homes as a better alternative to cheap apartments, providing investors with a potentially constant cash flow.
If you are looking for info about housing near Williston ND natives should visit our web pages online here today. Additional details are available at http://www.willistonmobilehome.com now.
