Finding Profitable Mobile Home Parks for Sale in South Carolina
Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.
This article was updated on 10/02/23.
With hiking, the arts, camping, and multiple industries calling South Carolina home, the state is a treasure trove for investors looking for mobile home parks for sale.
South Carolina may seem like North Carolina's smaller sibling, but this state has its own unique flavor. Indeed, the state produces more peaches than Georgia!
Did you know that almost 17% of South Carolinians live in mobile home parks? This signals an opportunity for investors: Mobile home parks are appealing to commercial real estate investors, especially when diversification is a portfolio goal.
Mobile home parks blend the multifamily concept along with individualism that is reminiscent of single-family homes. Unlike apartment home living, mobile homes are completely separate from each other.
Investing in mobile home parks gives investors a powerful addition to their real estate portfolio, with the power to magnify earnings.
Why Invest in South Carolina?
South Carolina is a hub of opportunities for investors who are ready to invest in mobile home parks for sale. Hunting for the best cap rate can take a while, but it depends on the location within the state; cap rates vary dramatically by location within the state of South Carolina.
With almost 20% of the state's residents living in mobile homes, looking for mobile home parks for sale in South Carolina makes a lot of sense: Investors get a population that is accustomed to mobile home living, and there's also a culture of taking care of your own stuff in the South. This can mean lower maintenance costs and upkeep on the properties.
In short, people in South Carolina turn to mobile home parks when they don't want the hustle and bustle of apartment living, but they also don't want the stress or cost of a traditional single-family home.
Ways to Locate Profitable Mobile Home Parks for Sale
So, you've realized that the profits on a well-organized mobile home community lift your portfolio to new heights, and you want to find great mobile home parks for sale. Here are a few ways you can do that.
- Your smartphone. The same smartphone you use to watch cats perform somersaults can actually lead you to the mobile home park of your dreams. Imagine that! All jokes aside, online listings for available mobile home parks are plentiful. You can limit your search by location, budget, and more.
- Local real estate groups. Word of mouth is the world's oldest advertising mechanism, and a busy real estate group will likely have at least one person who knows someone trying to unload a mobile home park. Remember that you have to speak up if you want to find deals; this is not the time to keep your interest a secret!
- Real estate brokers. A broker will have access to exclusive listings that aren't on the market, and unlisted mobile home parks for sale can lead you to more profitable deals.
- Newspapers. It seems ancient, but checking some of the smaller papers in a local area can reveal a seller who's extremely motivated and ready to let go of their mobile home community for a reasonable price.
Looking for mobile home parks for sale across South Carolina isn't difficult at all. In fact, your search is only beginning. The quest isn't over until you make the deal happen. You can't make the deal happen without examining the available mobile home communities in greater detail.
Mobile Home Park Investment Checklist
Are you ready to invest in a mobile home park on the market right now? It's tempting, right? Well, before you pull out the proverbial checkbook, it's time to step back and make sure that you're getting gold and not pyrite. Here are a few points to consider.
- Location. Not just where the park itself is located, but the area around the park plays a role in profitability. Some mobile home communities are extremely well kept, with a groundskeeper making sure that the property still looks pristine. However, other parks can become quite scraggly in appearance, which means more upkeep costs you have to deal with.
- Available lots. Not only do you want to look for a mobile home park that has plenty of units, but you also want to see that there's room for expansion. When you advertise the mobile home park, you want to ensure that others can bring their own trailers in, or you can buy additional mobile homes as the business grows.
- Financials. A well-organized mobile home community should have figures on how much it's bringing in, the current expenses, the current upkeep, and other costs incurred. The better the financials are listed, the better you can gauge whether or not to make the investment.
Many mobile home parks are offered for sale by sole proprietorships, which provides an incredible opportunity for profit. These operators may seek to sell the business because they're ready to retire or can't find the additional funds to expand the operation outward. Either way, this means an opportunity for savvy investors looking to move things around.
Best Practices for Investing in Mobile Home Parks
Getting into the mobile home community investing market is a wise decision, but it's important to follow best practices. Another aspect to look at when it comes to mobile home parks is to review the insurance.
Not every owner carries the right insurance, and even an active policy may not insure the property properly. This is the case if significant improvements are in play. Take the time to speak with a commercial real estate insurance broker who can listen to what you need and design the best insurance package possible.
Speaking of policies and paperwork, it is wise to look at the current leases within the mobile home park community of your choice. Who is close to renewal? Who just signed up? Cultivating the right relationships will make all the difference in terms of how well your community runs in the long term.
If there are terms in the lease that do not work for the way you wish to run the park, you can build an updated lease for new residents. These points are only the beginning; over time, you'll develop more insights into running your mobile home park.
Browse & List Mobile Home Parks for Sale for Free on MyEListing.com!
Investors and brokers can browse and list mobile home parks for sale completely for free right here on MyEListing.com. Sign up to receive customized property-type alerts and to access accurate market intelligence.
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