Should You Invest in Mobile Home Parks? Here’s What You Need to Know

Pros, cons, and why savvy investors—including Warren Buffett—are all in.

When most people think of mobile home parks, they picture old trailers and tired stereotypes. But that outdated image is far from today’s reality. In fact, mobile home communities are one of the most undervalued and overlooked commercial real estate investments—and for investors who understand the landscape, they offer remarkable potential.

In this post, we’ll break down the key advantages and disadvantages of investing in mobile home parks, so you can decide whether this strategy belongs in your commercial real estate portfolio.

The Rising Demand for Affordable Housing

More than 75 million Americans earn less than $25,000 per year. For many, that means traditional apartments or single-family homes are simply out of reach. Mobile home parks offer an affordable housing solution—often with more space, privacy, and a stronger sense of community than low-income apartment complexes.

Warren Buffett certainly saw the value. His company, Berkshire Hathaway, owns the largest mobile home manufacturer, insurer, and financier in the country—and has invested over $20 billion in the industry.

When one of the world’s smartest investors bets on an “underdog” asset class, it’s time to take a closer look.

Advantages of Investing in Mobile Home Parks

• Stable tenants – Mobile homes cost thousands to move, so tenants tend to stay long-term.
• Low overhead – You typically own the land, not the homes. That means fewer repairs.
• Attractive expense ratio – Operating expenses often run just 30–45% of gross revenue.
• Higher cap rates – Compared to apartments, MHPs often provide better cash flow.
• Tax benefits – Land improvements depreciate faster than apartment buildings (15 years vs. 27.5).
• Flexible financing – Many deals include partial or full seller financing.
• Additional income – Buying/selling mobile homes on-site can create a second stream of profits.

For smart investors willing to manage a niche asset, the upside can be substantial.

Potential Drawbacks to Be Aware Of

Like any investment, mobile home parks come with their share of risks. Here’s what to watch for:

• Financing challenges – Many banks shy away from MHPs, especially if records are incomplete. (This is why I teach you the Master Lease Strategy in my program, so can overcome these challenges)
• Stereotypes & image issues – Some investors hesitate due to outdated “trailer park” perceptions.
• Paperwork problems – Rent often paid in cash/money orders, making income hard to verify.  (Again, this is where the Master Lease Strategy overcomes this challenges)
• Fewer deals – MHPs are less common than apartments, so finding the right opportunity takes time.
• Depreciation – Mobile homes lose value faster than site-built homes (though the land doesn’t).

The good news? These challenges often create opportunity—especially for investors who know how to structure creative deals, work with sellers directly, and see value where others don’t.

Final Thought

If you’re looking for a way to invest in commercial real estate with lower competition, strong cash flow, and built-in tenant stability, mobile home parks are well worth your attention.

They're not for everyone. But for those willing to learn the strategy, they offer a high-upside, under-the-radar way to build real wealth.