Amorgin Investment Group LLC was founded with the singular purpose of providing high standards in the area of property purchasing and marketing, property management, and partner communication.
an Evolving Industry
Manufactured Housing Communities (MHCs) are becoming an extremely valuable commodity for low income housing in the United States. Today, there are approximately 50,000 MHCs across the U.S. As affordable housing stretches out of the reach for more and more Americans, many people are finding MHC living a satisfying and cheaper style of life. The demand for MHC spaces will rise in the future because of a growing number of fixed income retirees of the Baby Boomer era who are unable to afford more expensive housing.
There is tremendous upside with MHCs that are not completley full. For example if an investor purchases a 100 space MHC with 75 spaces filled, there is an opportunity to increase the net income and property value by 33% by filling the community. It is not uncommon to find that long time owners of MHCs have become less aggressive in filling spaces because they are already reaping substantial profits due to low loan payments, or no loan payments at all.
Researchers have announced that approximately 120,000 families are losing their stick built homes per month. Many of these families don't want to be apartment dwellers, or home renters.
While more than a few poorly maintained and unattractive communities still exist, the manufactured housing sector has come a long way from its past property image. Home buyers today can find manufactured home communities with the same amenities as upscale apartment complexes and residents typically experience the same pride of ownership as in traditional communities of single family homes or condominiums.
Even the property description has evolved. The term Mobile Home technically applies only to factory fabricated housing units built before June 15, 1976, when the U.S. Dept. of Housing and Urban Development code was created. Today's manufactured homes are often indistinguishable from built in place residences. Porches and garages are widely available and some homes offer working fireplaces, and high end stainless steel appliances.
But one aspect of manufactured housing that has not changed is its affordability. Depending on the region of the country and construction costs, new manufactured homes average from 10 to 35 percent less than comparable site built homes, excluding land costs. although some manufactured homes sell in excess of $100,000, most are sold for between $20,000 to $40,000.
Contrary to popular belief, manufactured homes appreciate at about the same rate as stick built homes, depending upon market factors and the availability of a local resale network to expedite sales.
In many communities, most tenants own their homes and lease the underlying land from the park owner. Pad rents generally range from $200 to $350 per month or more (depending on market dynamics) and usually include garbage removal, but not necessarily other utilities.
For decades manufactured housing communities have been a seniors housing mainstay. However, owners and developers have become increasingly adept at market segmentation and targeting demographic groups (families) that may be priced out of the site built market for homes with the amenities they want. A high quality manufactured community can provide affordable homes and high end amenities. For example, a family oriented community would have playgrounds for children, whereas a retirement community might have upscale clubhouses to accommodate social activities.
David Rousher, author of the book "How to Invest in a Mobile Home Park - For Business, Money and Profit" (available through Amazon Kindle) is a graduate of the University of California at Davis, has been an owner, broker and property manager of mobile home parks for the past 36 years. Mr. Rousher has special expertise in the areas of property procurement and acquisition, property presentation and packaging, partnership investing and property management. He has owned and managed 34 mobile home park communities and has managed several mini storage facilities. He has brokered over $100M in mobile home park community sales and has arranged financing for most of his clients. He has training in the areas of Real Estate Appraisal, Mobile Home Park Financing, Water Rights and Management, Real Estate Law and Ethics, Business and Investment Management.