Investing in real estate often offers a wealth of opportunities, one of which typically being mobile home parks. These communities are not only affordable housing options but also potentially lucrative investments due to their historically high demand and low tenant turnover rates. The essence of this article is to guide you through the process of running a potentially effective test ad to evaluate demand in a mobile home park, a crucial step before committing financially to such an investment. We’ll walk you through creating and monitoring an ad, vetting applicants, and analyzing the data to help make an informed decision.

Step 1: Post an Ad Trying to Sell a Mobile Home Located at a Specific Address in a Mobile Home Park You’re Looking at Buying

The initial step involves crafting an attractive yet realistic advertisement for a mobile home for sale. The goal is to draw the attention of genuine potential residents rather than flippers or wholesale buyers. For effective reach, utilize platforms like Craigslist, Facebook Marketplace, local newspapers, and other relevant channels. Additionally, placing bandit signs around the property can enhance visibility to locals. Here’s a sample ad to help get you started:

Mobile Home for Sale – 3 Bed 2 Bath – $25,000

Discover affordable, spacious living in a welcoming community at Oviedo Mobile Home Park. This 3 bedroom, 2 bathroom mobile home offers a generous living space, fully-equipped kitchen, master suite, two additional bedrooms, a laundry room, storage shed, and carport. Well-maintained and move-in ready, with a lot rent of just $450/month covering essential services. The park features a clubhouse, pool, playground, and more, all conveniently located. Don’t miss out on owning a home for less than the cost of rent. Contact us for a viewing today!

At Keel Team Mobile Home Park Investments, we usually invest using a combination of different methods with our mobile home park investments, typically involving the Buying, Renovating, Holding Long-Term, and Refinancing our assets with Agency Debt (Fannie Mae/Freddie Mac). We only ever sell our properties if we lose trust in the market or if we are presented with a Godfather offer, as the famous investor Sam Zell would say. Check out our eBook on the “Top 20 Things I’ve Learned from Investing in Mobile Home Parks” by Andrew Keel for more potentially valuable insights!

Step 2: Monitor the Responses and Track the Number of Calls

Set up a dedicated phone number or email to manage responses, recording the volume of inquiries within a week. Consider 10 or more calls as an indicator of strong demand, while fewer calls may suggest lower interest. It’s crucial to handle each inquiry professionally, providing a consistent and informative response to gauge genuine interest effectively.

Step 3: Further Vetting the Applicants and Analyzing the Data

During interactions, inquire about the applicants’ financial situations, including income, credit score, and savings. This data offers insights into the tenant base, expected turnover, and how these factors compare to market averages and the park’s current standing. Analyzing this information helps you understand the demand and whether the investment aligns with your goals.

Conclusion

Running a test ad before investing in a mobile home park is a strategic move akin to having insider knowledge on market demand. This approach potentially mitigates financial risk and provides a clearer picture of the investment’s potential. Mobile home park investing, with its unique advantages, continues to attract real estate investors seeking opportunities with steady demand and returns. Taking the time to assess demand through a test ad can set the foundation for a successful investment in this niche market. For those considering entering or expanding within this sector, this strategy is a valuable step in your due diligence process.

By following these steps, investors can potentially navigate the complexities of mobile home park investments with confidence, backed by data-driven insights into market demand.

At Keel Team Mobile Home Park Investments, we’re dedicated to enhancing communities while potentially maximizing investor returns. Our focus is on improving residents’ lives while delivering strong profits to our partners. Get in touch using the contact details below to learn more about our investment approach and strategy.

Disclaimer:

The information provided is for informational purposes only and should not be considered investment advice, nor a guarantee of any kind. There are no guarantees of profitability, and all investment decisions should be made based on individual research and consultation with registered financial and legal professionals. We are not registered financial or legal professionals and do not provide personalized investment recommendations.