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Let’s talk about cash-on-cash returns. That’s the ratio of annual pre-tax cash flow compared with the total amount of cash you’ve invested. While not the only factor to consider when analyzing investment opportunities, your cash-on-cash return is an excellent metric to determine if an investment is profitable.
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WHAT INVESTMENT OFFERS THE HIGHEST RETURN? By Mobile Home Investors
LET’S TALK ABOUT CASH-ON-CASH RETURNS. THAT’S THE RATIO OF ANNUAL PRE-TAX CASH FLOW COMPARED WITH THE TOTAL AMOUNT OF CASH YOU’VE INVESTED. WHILE NOT THE ONLY FACTOR TO CONSIDER WHEN ANALYZING INVESTMENT OPPORTUNITIES, YOUR CASH-ON- CASH RETURN IS AN EXCELLENT METRIC TO DETERMINE IF AN INVESTMENT IS PROFITABLE.
COMPARING ASSET CLASSES Stocks: According to brilliant investors like Warren Buffett, seven percent is a good return annually from stocks. Assuming a balanced portfolio invested long- term, that is. Short term investments are too volatile to be factored in, and investing in a single product is also too risky to consider as well.
Single family homes: Rental properties are popular. Vacancy rates are at an incredibly low point currently at around the seven percent mark. It seems if you have a single family home that you want to rent out, there is a tenant who wants to live in it. Rental homes are relatively steady investment, but what about if you have a vacancy? The biggest risk lies in the possibility of zero income in any months where you do not have a tenant.
Mobile Home Parks: As a low-cost option for housing, mobile home parks provide an in- demand service to very stable tenants – tenants who are proud to own their own home and want to stay in the park.
HOW DO MOBILE HOME PARKS PERFORM? Get ready for the big news… mobile home parks are an outstanding investment. Conservative numbers suggest that investors can expect a projected cash on cash return of 15 percent all the way up, even as much as 40 percent! There is no other asset class that provides the financial security and cash flow that mobile home parks provides.
FOR MORE INFORMATION mobilehomeinvestors.com