Choose Between RV Park & Mobile Home Parks In Oregon
There are a plethora of ways to get started in real estate investing. Plus, if you are planning to buy a different type of home than a traditional home. Then, why not invest in RV and mobile home parks.
RV parks and mobile home parks in Oregon are two distinct types of campgrounds that new investors must choose from when making their first purchase.
These two types of grounds may be offered by the same brokers or be located in close proximity to one another in some cases. As a result, this decision becomes even more difficult. In today’s post, we’ll contrast these two types of investments in an attempt to answer some of your concerns.
Recreational Vehicle (RV) Parks
As a buyer of a campground or RV park in Pendleton, Oregon, you’ll need to know exactly what level of involvement you’ll be expected to put in.
LOW TURN COSTS – With more traditional multifamily investments, the owners have to pay for new paint, new carpet, roof replacement, AC replacement, and other ongoing capital expenses. RV park Pendleton Oregon basically just land with utilities buried beneath it. The “turn cost” is low, and the amount of money needed to keep the business going is also low.
LIMITED COMPETITION – Depending on where the RV Park is, there is still not much competition in this market niche. The need is great and getting bigger. Even though there are more parks, there are still not many. Parks have a low vacancy rate, especially in the Sunbelt, because people can get to them easily, and they are marketed well.
DO NOT HAVE TO GET RID OF IT – With traditional multi-family housing, tenants who don’t pay or are hard to deal with having to be kicked out, which can be expensive and take time. In an RV Park, it is much easier to get rid of a guest who isn’t paying or is being a pain. Think about how this is like running a motel.
Mobile Home Parks
Mobile home parks in Oregon can be a good choice for people who want to invest in real estate.
LOW COST – Residents are more likely to stay in their current mobile home park for a long time because moving to a new park can cost thousands of dollars. So, instead of having to deal with new people all the time, you can get to know your residents on a more personal level. You won’t have as much to do at work, but you’ll get to talk to the people who live in your mobile home park more often.
LOW-RISK – Mobile home parks are a safer place to put your money. The risk of loss only goes down as more units are added. The risk is spread out more when you have more tenants.
When you own a lot of units, the high costs of things like eviction or unexpected costs are spread out over a lot of units and don’t hurt as much.
GOOD PLACE TO LIVE – When people want to buy campgrounds or RV parks, they have less competition than when they want to buy mobile home parks. Because of this, some people might think that mobile home parks are the best place to live.
Some investors may be interested in the grounds if they are less expensive or take less work to keep up. At the end of the day, more competition can cause prices to go up and the number of products to go down. When you want to live in a mobile home park in Oregon, you might not have a lot of choices.
Putting your money into a campground or RV park can be a great idea.
However, these aren’t your only choices if you want to put money into real estate. Before making a decision that might not help you reach your long-term financial and career goals, you should think about your priorities, how much it will cost, and other factors.