any preference between apartments, mobile home park or retail as a investment in 2009, and how important is

In Buying Property - Asked by gunnar o. - Jan 24, 2009
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Phil B.
Wilmington, NC

With the economy going into the dumper and little being done to help distressed homeowners, I don't see retail as doing particularly well this year. Retail sales tanked over the holidays and, as long as consumers don't perceive any concrete results, I think retail is going to be hardhit.
Rentals, on the other hand, apartments or mobile home parks should do well, for precisely the same reasons. People who lost homes to foreclosure will need to rent. Mortgage money is available at historically low rates, but just last week rates started ticking up again, and many lenders have cut back on staff, so processing times are going up as applications pick up. Mobile home parks might be the better of the two, if you know how to buy and manage them right, they cash flow very well.
Where would come into play, I think, in the decision between MHP's and apartments. In that case demographics, and the type and availability of employment would factor in.

Jan 26, 2009
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Peter M.
Lender/Mortgage Broker
Walnut Creek, CA

I would agree with Phil about avoiding retail. Expect rental rates to fall and vacancy to rise as consumers spend less and retailers cut back on the number of stores.
Both mobile homes and multifamily should hold up stronger in 2009 than. However, with the number of vacant single family homes available as rental units, even these rental rates could decrease.
Many mobile home parks, in general, are operated by "hands on" owners. They tend to need a little management to keep them from sliding into decay due to bad tenants. Multifamily may be a better investment for the passive or "hands off" investor.
Where is a more difficult question and will depend on the investor's desired return. It will also depend on the risk the investor is willing to accept. A cash flow investor should look for areas with steady employment and long-term job growth. A fragile job market could spell disaster if a major employer(s) were to fail.
Happy investing.

Jan 27, 2009
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Juan G.
Ontario, CA

It can be a great time to buy retail if it is in an area that is underserved and has high barriers to entry of new centers.

Feb 3, 2009
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Tai L.
San Diego, CA

San Diego?

May 23, 2009
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