What Is the Ideal Number of Lots You Need for a Profitable Mobile Home Park?
If you own a mobile home park, you may be wondering how many lots you need to make a profit. Though owning mobile home parks can be a good investment, you’ll need to consider how much profit you can make in a given year including costs that may eat into your profit margins, like repairs, taxes, etc.
With a lot of expenses and the number of lots to consider, owning a mobile home park may not bring the kind of profits you need. You’ll also need to consider the location of the park, as you’ll need a market with a decently sized population. With a lot of factors in play, you may find that securing a mobile home park buyer for your property is the right option for you. A fast cash offer can take an unprofitable mobile home park off your hands. We’ll go over how many lots you’ll need to make a decent profit off your mobile home park, as well as how you can find a mobile home park buyer with a fast cash offer.
How Many Lots Do You Need to Make a Profit?
Owning a mobile home park can be profitable if you have enough lots to rent. The ideal number of lots you need to make a profit, however, may be higher than what you have available. For example, if you have a park with 20 lots and you charge $240 per month, your income total is $56,000 a year. However, expenses and repairs often take up to 30 to 40% of your profits.
Additionally, one of the risks of owning a mobile park is dealing with expensive repairs that need immediate attention. For instance, if you have a septic sewer system that needs repairs, you’ll likely spend a lot of cash on repairs. Since it’s a health risk to residents, you’ll have to take care of these repairs as soon as possible. So, if your park has a private septic system instead of city-managed sewer services, you’ll have an increased risk of expenses.
You may have other expenses to consider, including maintaining community spaces, landscaping, and city utilities. All of these factors may eat into your profit margin. In order to make a profit, you’ll need to have a sizable number of lots in your park to offset monthly expenses and cover any expensive repairs needed.
If you own a mobile home park that has a small number of lots, you should consider selling it for a fast cash offer. Finding a mobile home park buyer may prove difficult if you don’t pull a decent profit. Additionally, expensive repairs on features like the septic tank system may put you in a tough financial spot. Our company offers fast cash offers that take your mobile home park in its current condition–no repairs needed.