Investing in mobile parks vs. apartment buildings in St. Louis, MO

Investing in mobile parks vs. apartment buildings in St. Louis, MO

St. Louis is a major port city of Missouri. It is the hub of all economic and cultural activities in Greater St. Louis metropolitan area. Today, many real estate investors are looking for investment opportunities to grab long term profits in its real estate market. If you are a small investor planning to invest in real estate, you have two best investment options i.e small apartment buildings and mobile parks. Both happen to be examples of affordable housing in real estate in St. Louis. Most investors, when dealing in real estate St. Louis mo, prefer to buy apartment buildings as there is little awareness about mobile home parks. However, there are many pros and cons associated with investing in mobile parks and apartment buildings in St. Louis, MO.

Vacancy rates

The success of your property business depends upon the vacancy rates you are able to achieve. MH parks have a very low turnover ratio as compared to apartment buildings. It is very easy to pack and move out of an apartment whereas it is relatively difficult for people to move out from MH parks. This is where MH parks score over apartment buildings in Saint Louis real estate.

Appreciation in value

Very few MH parks are built in St. Louis every year while apartment buildings come up on a regular basis. Demand for affordable housing continues to increase. This makes it smarter to invest in MH parks than in apartment buildings. This is the reason why MH parks remain hotter than apartment buildings in Saint Louis real estate today.

Maintenance

It takes a lot of time and money to clean and make the apartment ready for renting once a tenant moves out. On the other hand, your space is ready to rent out to a mobile home once a owner decides to relocate his mobile home. Talk to St. Louis real estate companies and you will know why maintenance is higher for apartment buildings than MH parks.

Comparison of initial investments

Your initial investment in MH parks is relatively less than that of in apartment buildings.

You buy buildings when you invest in apartment buildings whereas it is mostly land when you invest in MH parks. You could save thousands of dollars by investing in MH parks and could use this saving to make improvements in the land you have purchased. Moreover, you can sell house fast at St. Louis by offering your park space to a mobile home owner.

Rent increase is easier in MH parks

It is difficult for a mobile home owner in your MH Park to relocate to another park when you increase the rent by 10-15 dollars per month. On the other hand, it is relatively easier for people to move out of an apartment each year with their luggage and stuff if you increase the rent. People are always looking for cheap rent places and you’re providing them an opportunity to keep searching for better rent places by increasing apartment rent every year or every six months.