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Keyhole Financial



Mobile home parks provide affordable housing needed for the number of low-wage earners in the United States. A recent report released by the Social Security Administration notes that 38% of all wage earners make less than $20,000 a year. It is estimated that roughly 8 percent of the U.S. population, or 20 million Americans, presently live in mobile homes. 

Benefits to investing in mobile homes

Low cost per unit

Mobile home parks allow investors to acquire more units for less money. It is the lowest cost investment per unit of any real estate asset class with potentially higher risk adjusted returns. Most park owners own the land, and not the units themselves. This means the cost of investment is typically a lot less in comparison to the number of units. 

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Low cost of repairs and maintenance

Not only is it low cost, it's low involvement. The investor doesn't have to do anything! The owner of the mobile home is responsible for maintenance, updates, and repairs to their residence – not the landlord. While the mobile home park owner must account for upkeep of the park, it is significantly less than upkeep in an apartment building.

Low risk

The risk of loss decreases with more units. When there are more tenants, the risk is more spread out. When an investor owns a large collection of units, the high cost of occurrences such as eviction or random expenses are spread out across a large portfolio and are less of a hit.


High demand

New mobile home parks are often not developed due to government zoning changes. This means the demand for mobile homes in well-managed parks is increasing as the need for affordable housing continues to grow. Baby boomers on fixed incomes are retiring with little savings, and mobile homes are a good solution for the affordable housing deficit.


Low turnover

A huge expense for multi-family properties is tenant turnover. Cleaning the unit, tracking down a new tenant, and lack of income during vacancy, all greatly reduce the potential monthly income. Conversely, mobile home parks have low turnover because it costs the tenant thousands of dollars to move their home out of the park. Most mobile home park owners plan to stay for at least 10 -15 years, thus reducing turnover and risk.


Less competition

Mobile home park investing is excellent for those investors who do not want to compete with the huge volume of investors looking for traditional real estate investments. Mobile home park investing is the best-kept secret in the real estate investment industry!


Do investors need to be accredited?

No.  Because investors will be purchasing the mobile homes from their own funds, they don’t need to be an accredited investor.


What’s the minimum investment needed?

The average cost of a used mobile home is $35,000. The borrower usually puts down 10% paid to the Park and finances the balance with us from 5 to 10 years depending on the amount financed. We ask investors to be able to invest between $25,000 to $100,000.


What's the process the borrower goes through?

The borrower(s) must fill out and be approved by the Park and our Underwriter. After being approved, we find an investor interested in financing the deal.


What is the Park Owner Personal Guarantee?

In most instances, the Mobile Home Park Owners sign a “Personal Guarantee” with the Investor. This means the underlying loans are secured against loss by the Park Owner who is personally guaranteeing tot he Investor that should the Borrower default on their loan, the Park Owner may opt to evict the borrower and fulfill any remaining financial obligations to the Investor. 


Why would the Park Owner give a Personal Guarantee?

The last thing a Park Owner wants to see in their park is a vacant space where there once was a mobile home. If the Park Owner has to evict a Borrower, it can be done usually within 30-60 days. The mobile home is considered to be "chattel" just like a car and so it doesn't have the same restrictions and regulations as a typical house.


Once the Borrower has been evicted, the Park Owner pays the Investor what's owed on his Agreement, he then takes back the mobile home and gets to resell the mobile home again! It's a win-win for the Park Owner and the Investor.


What's my collateral as an Investor?

The mobile home is the collateral along with the “Title” issued by the Department of Motor Vehicles proving the Investor is the legal lienholder.  


What is the default rate on mobile homes?

While there is no "guarantee", the industry default rate average is below 5%. 


How often is the Investor paid?

The Investor is paid monthly directly from the borrower. If the Investor is having us service the loan, then they are paid by us on a quarterly basis.


What if I don't want to deal with any of the management side of dealing with the borrower?

We offer to take care of all communication and servicing with the Borrower for $25 per month.


How is the Investor paid?

The investor can be paid by check or by direct deposit into their bank account. We'll help you set up the initial steps in setting up the payments.


What is the broker fee for each deal?

The broker fee for facilitating each deal ranges between $2,000 and $3,000 depending on the size and term of the loan. When the Investor wires the mobile home funds to the Park Owner, they also must wire the commission fee to Keyhole. 


How is my net IRR calculated?

The net IRR is calculated by taking the total interest amount the Investor will earn and subtracting the broker fee and then dividing that number into the amount invested.  The IRR usually falls between 9% and 12% depending on the number of years the loan will be financed and the amount of the loan.


Can I invest with my SDIRA?

Yes. Each SDIRA company has different requirements so you need to check with them first. 


What happens if I want to get out of my investment?

Once you commit to the specifics of the mobile home you purchased, you're obligated to those terms. Should you need to get out of your investment earlier than what's in the agreement, we can help by listing your unit for sale and try to sell it to another investor. 

How to get started


If you're interested in getting started, please click here to fill out our Mobile Home Investment Form. Once you submit this form, we'll contact you right away to start the investment process.


For immediate questions, feel free to call me at 516-750-0392 or email us at


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