With soaring rental prices and mortgage rates, the desire for one’s dream home has often been set aside, although not abated. This reality can make anyone hesitant to invest in real estate. However, the market is ever-changing, and despite the inflation, real estate can still yield stable income.
Citrus Glen Capital offers a diverse portfolio with investments in mobile home parks and turn-key multifamily developments. What does this mean for our investors? In order to fully understand how investing with us provides a hassle-free, passive income, let us break down the qualities of mobile home parks and turn-key properties.
Mobile Home Parks
In contrast to RV parks, mobile home parks usually have homes that are permanently in the park. Mobile homes are named such because they can be moved somewhere else, and with such quality comes many benefits. The following are some advantages to mobile home parks:
- Affordability: Unlike traditional homes, mobile homes are more affordable, making them budget-friendly for individuals or families. Owning a mobile home park, then, can be a good source of income since affordability is always an attractive option for home seekers.
- Community Atmosphere: Mobile home parks can provide a strong sense of community among residents. Like RV parks, mobile home parks can have common areas for residents that help with networking.
- Flexibility: Mobile homes can be moved to another park if desired. This makes it a flexible residence unlike traditional homes and a much more furnished one than RVs.
- Ownership: Mobile homes can be owned and moved to another park, and owners need only to rent the land among other home expenses. Mobile home residents can build equity with their homes just like traditional homeowners.
- Lower Maintenance: Mobile homes have smaller yards and structural components than traditional homes. Besides that, mobile home park owners usually take less time and manpower to manage the park; unlike RV park owners, they only need to maintain common areas while the residents take care of the upkeep of their own mobile homes.
- Investment Opportunity: Mobile home parks can be lucrative for investors since the demand for affordable housing will always exist. Revenue from rental income can also be increased with attractive improvements to the park. Despite inflation, investing in mobile home parks can still guarantee stable returns as the value of homes appreciates.
- Stability: Residents and investors experience stability through mobile home parks. The consistent demand for affordable housing makes mobile home parks a source of steady income for investors. On the other hand, residents can feel stability with their budget-friendly mobile home, tight-knit community, and lesser financial burdens.
- Diverse Tenant Base: Mobile home parks can attract people from various socioeconomic backgrounds. Residents can be retirees, families, or individuals as young as millennials. For investors, this diversity shows how impactful their investments are.
Turn-key Developments
Turn-key properties are long-term rental properties. These may be properties that have been renovated like single-family or multi-family properties—specifically condominiums and apartments, for example. The following are benefits of investing on turn-key properties:
- Immediate Rental Income: Since turn-key properties are usually already renovated, they are typically ready for immediate move-in upon purchase. You can start putting it up for rent right away without needing extensive renovations or repairs.
- Lesser Time and Effort: Because turn-key properties are already renovated and often managed by a property management company, investors save time and effort that would otherwise be spent somewhere else.
- Lower Risk: Investors can assess the turn-key property’s performance and potential rental income before purchasing, reducing the risk associated with unexpected repairs or vacancies.
- Professional Management: Turn-key properties typically come with professional property management services. This means that the daily property management tasks, such as tenant screening, rent collection, and maintenance, are handled by experts, so investors do not have to spend any time and stress about those aspects.
- Out-of-state Investing: Turn-key properties are popular among investors who want to invest in real estate markets outside of their own geographic area. With professional management in place, investors can effectively own properties from far away. Such a system also allows investors to choose their level of involvement in property management.
- Predictable Cash Flow: Turn-key properties are often fully leased with tenants already in place, so investors can enjoy a predictable cash flow from day one, without the uncertainty of vacancy periods. Hence, you can start generating income as soon as possible.
- Passive Income: While investors will have to make significant investment upfront, purchasing turn-key properties is one of the most popular methods of earning passive income. As an investor, you do not need to worry about directly managing the properties yourself when there are property managers for them.
- Portfolio Diversification: Turn-key properties allow investors to diversify their real estate portfolios and grow their holdings by investing in different markets and property types, reducing overall investment risk while getting various income sources.
Summary
Overall, mobile home parks and turn-key properties offer a convenient and relatively low-risk way for investors to generate rental income and build wealth through real estate. However, it is essential for investors to conduct thorough due diligence and research to ensure they are investing in a quality property with strong potential for returns.
Investing with Citrus Glen Capital, for instance, eliminates the hassle of finding, renovating, and maintaining good properties. Investors do not have to worry about property management when our firm can help find the right people for the job as well as facilitate other processes needed for the upkeep of properties.