MHCs are residential subdivisions; investors owns the land and property infrastructure (streets, utility connections and common areas) and typically only leases the land to homeowners.
High Tenant Moving Costs
Costs range from $5,000 to $10,000 for reinstallation of their home into a different community. 10-15% average annual tenant turnover (vs 50% for apartments).
The largest public owners combined hold less than 3% of the 50,000 communities in the US.
Excellent Risk-Adjusted Returns
Stabilized operating expenses are in the 30-35% range vs ~50% for apartments. Average lot prices are systematically below market by an average of 50%.
Minimal Ongoing Expenditures
Value of roads, clubhouses and common area improvements can by maintained with periodic capital expenditures averaging $125/lot annually.