Developing a Mobile Home Park

Perhaps one of fastest ways to turn raw land into a real estate gold mine in today's market is by creating and developing a mobile home park. Mobile home parks can be as small as a half acre property to a parcel of hundreds of acres to be used for the purpose of supporting multiple families. Eight percent of all citizens United States of America live or have lived in a mobile home park at some time in their lives. There are mobile home parks in every state of the country that are available to support every demographic and every income lifestyle possible.

Mobile home Parks are generally simple to create and manage. Depending on your location to location of your park and the size of your park determines whether you will run the park yourself or hire a management team to run it for you. For the purpose of this article I'll describe to you the mobile home park I am attempting to create myself. Located in the mountains the West Virginia I have found a 48 acre parcel of land just off an access road about a mile and a half from the Wal-Mart shopping plaza, in Preston County. This 48 acre tract cost the $48,000. This comes to an average cost of $1,000 per acre.

A typical mobile home park usually has a yard of less than 1/10 of an acre this is usually done to maximize profit potential for the property owner. However I believe in making money but by allowing proper yards sizes for families with children to actually grow up and play in. With a 48 acre park, I have the ability to make a larger lots per home while still achieve being a decent financial output from my investment. I have decided the lots in this park will be ¼ of an acre per home. This is almost three times the size of the national average for mobile home park lot. When you own a mobile home park you on the land and rent the land to the person who owns the mobile home sitting on the lot. Therefore the person on your lot pays you a monthly fee in the form of rent for the right to live on your land. At this phase of putting together a plan for developing the spark I've decided that their rent per quarter acre lot will be $125 per month. Included in the cost of land I will have water interests services snowplowing services and access to public mailboxes available without further cost. Let's assume for the sake of argument that eight acres out of the original 48 acre tract will be used for public access, streets, and other right away needs. This leaves me with 40 acres of land that can be developed. All this being said that leaves space for one hundred and sixty 1/4 acre mobile home lots in my park. Each of these lots will bring me a gross income of $125 a month. This brings my grocery come to $20,000 a month or $240,000 per year. Not a bad turnaround for an initial $48,000 investment.

As you can see, creating a mobile home park is not all that difficult and can create a huge profit was minimal investment. Best of luck in your future real estate endeavors!