I just read a very interesting article about the Mobile Home Park
Investment Boom. (It was published in August 2007, so adjust for
economy.)
http://www.nuwireinvestor.com/articles/mobile-home-park-investment-boom-51204.aspx
Although I didn't understand all the ins and outs, I thought the
article was organized well and speaks to some of the discussions
we've had here concerning trying to turn a MHP (mobile home park)
into low cost community housing. It breaks down the elements you need
to evaluate before investing in a mhp. This includes larger parks
consisting of manufactured home on larger lots. It even spoke to
residents constructing separate housing (storage or guest home) on
their lot.
There was a great argument supporting a 'boom' in investments. Add in
the current housing crisis and it bolsters the argument for investing
in mhps.
There is a lot of variety in types of mhps. Since we have talked
about the potential of using mhps as a vehicle for creating a low
cost community due to zoning, I'm passing this along.
I'm still not convinced a group of community dwellers could raise the
capital for purchasing a mhp, but would love to be proved wrong. What
do you think?
Has anyone here cornered a cohousing developer and asked them how
expenses could stay within reason for a LCCH?
Cheers!
Marganne
> Most local governments are not friendly to mobile home parks and
> have made it difficult to get new properties zoned for that
> purpose. So while the supply of parks is dwindling, there is not a
> sufficient number of new parks being created to meet this
> demand. For the savvy investor that could spell an extended bull
> market for mobile home park investments.
This predicted mobile home park bubble is mostly a creation of zoning.
When the next wave of adjustable rate mortgage resets hit in
April/May, I expect zoning will start to get ignored because the
formerly non-marginal middle class will not be willing to live in
their cars. If you wait six months, the zoning bans on affordability
may be dead enough that you can do LCCH with existing built houses.
Brian