Out of area mobile home park investing can be incredibly rewarding, but that doesn’t mean it without its own unique set of challenges. How can investors maximize the upside, and stay sane?
The 3 Biggest Challenges of Investing at a Distance
- Accurate due diligence
- Effective local property management
- Falling into the road warrior trap
Do not allow the distance to take away from the enhanced returns out of area properties can offer, or the peace of mind, and lifestyle they can deliver on.
Learn to Master Virtual Management
From due diligence through long term annual property management those that learn to build, and effectively direct and monitor teams remotely will have a significant advantage. It cannot only bring cost efficiency, and the resulting boost to net profits, but can also improve effectiveness, and deliver on a superior lifestyle.
Get the edge here by learning and implementing:
- Outsourced staffing platforms like Upwork
- Cloud based project management software like Basecamp and Trello
- Property management tools and apps like appfolio and InfoTycoon
- Internal social tools like Salesforce’s Chatter or Google tools for business
Pick Parks that Match Your Lifestyle
Get a solid head start to your goals by picking mobile home parks that can best deliver on your lifestyle and financial goals. If you are investing at a distance and it’s difficult to find affordable professional management locally; look for a park that isn’t going to be as management intensive. If you want the freedom to travel the globe and just check in on your bank deposits every couple of months; find the easiest turnkey properties. If you are settling into an area where you plan to stay, and don’t mind being hands on, or may even enjoy it, then take the parks with the best profit potential.
With a good team and tools in place, and depending on your park, you might want to go and checkup once a quarter, or once a year. It depends on what you’re doing in your park, how work intensive the turnaround is, what the performance is like, and if you have anyone else that can go for you. Make sure to take this into account upfront, and when planning additional acquisitions.
Make this easier by choosing parks that are close to an airport. That way, you don’t burn a day flying into an airport and traveling to your park, and then another day on your way home. Perhaps you can group several close together in clusters. Perhaps you’ll specifically target mobile home parks in areas you visit annually on vacation anyway. Maybe you can get a better air miles credit card and join rewards programs to earn free flights and hotel stays to take care of this. Don’t forget to keep all of your receipts and records for the tax deductions.
Planned well this can actually be one of the most fun and exciting parts of investing. Just make sure you put technology and good people on your side early.