Driving NOI in Mobile Home Park Investing with Amanda Cruise: ep 289

Episode • Mar 15, 2023 • 19m

Mobile home parks may not be the most glamorous real estate sector to invest in but, as Voyage Investing's Amanda Cruise shares, it can be among the most profitable.

Voyage brings a mobile home value add strategy to the table, the look for parks where they can go in and get the infrastructure up to a better standard and, of course, improve the net operating income to force that appreciation.

With mobile home parks, the market can be a lot more forgiving because of affordable housing demand. As long as the market is growing and has diverse employment, Amanda's comfortable in that space and it's a lot easier to compete in a secondary or a tertiary market while still having a solid product.

While competition in the space has heated up compared to 5 or 10 years ago, Amanda shares how they're able to avoid competition with institutional competitors since they can go smaller than institutions will and they can look outside of primary markets for the best opportunities.

For the video interview, visit: https://youtu.be/F1Mg0UizVog

Key Takeaways:

Facebook marketplace is a really good way to buy and sell individual homes, which Voyage still uses to this day when they're selling homes in their parks.
While competition has increased in the space it's still not as competitive as some other sectors.
There's a big trade off that some people don't talk about enough, which is that mobile home parks are more work than multi-family. You are the one determining what the property management strategy is, and then you're managing a manager, so there's a trade off there, but you can drive higher of returns because of that.