Why Mobile Home Communities?
Impact for Good
Many mobile home community residents struggle with bad management and dilapidated infrastructure, which can negatively affect their quality of life. At Open Door Capital, we set out to improve our communities. Not just for profits, but to provide affordable housing and to create a feeling of dignity and pride in each community we manage.
Cash Flow From Day One
We believe that no investor should have to choose between cash flow and appreciation. That’s why we invest in CashGrowth™ properties – properties that consistently and conservatively provide cash flow, but with value-add opportunities that enable forced appreciation.
Recession Resistant Asset Class
During a recession, rental rates don’t just drop like most assume. They compress starting at the top. The floor is so low with mobile home communities that there’s little room for movement. Even in a recession, most people can afford $200-$300 for lot rent.
Many of the mobile home communities we purchase have 20-30% vacancy. This is part of our strategy, and allows us to bring in used (or sometimes new) homes to fill those vacant lots. Filling vacancies increases Net Operating Income (NOI), driving the value of the park along with investor returns.
Reduced & Stable Operating Expenses
Because residents own their own home – and because of the prohibitive costs of moving a home – tenants tend to stay significantly longer than other asset classes.