When thinking of real estate investments, one might typically consider more traditional forms like single-family homes, condominiums, and apartment complexes. However, as household size shrinks and individuals seek more affordable housing, the tiny house movement has become a major opportunity for savvy investors. One of the best ways to get into this burgeoning market is through park model cabins: made-to-order turnkey properties that are affordable, efficient, and highly durable regardless of climate.
Let’s explore four reasons why park model cabins should be at the top of your list when considering how to capitalize on the tiny house movement, especially in West Virginia.
There are endless opportunities with park model cabins
When you think of park model cabins, you likely imagine vacation stays, and this is certainly a great option: imagine having your own AirBnB park on a gorgeous parcel of land, with multiple guests paying up to $200 a night for a restful vacation. West Virginia is a highly sought-after vacation spot for those wishing to hunt, fish, or enjoy the great outdoors, and staying in a professionally-managed accommodation would be an excellent draw.
However, you can also build park model cabins for full-time occupancy as long as they are properly hooked up to utilities – and good news, because most available park model cabins builders assemble their cabins with all the wiring and plumbing for utilities.
Park model cabins are affordable, both for investors and occupants
West Virginia is an exciting opportunity for real estate investors, but it also has its challenges. With over 16% of West Virginians federally classified as impoverished, affordable housing is extremely important to make good on an investment, which means that any new housing built must be priced attractively for the lower-than-average per-capita income of just over $24,000. Additionally, the average household size is about 2.5 individuals, so smaller housing is essential; you won’t get far by building large five-bedroom houses.
This is why park model cabins are an excellent opportunity for West Virginians; they’re conveniently sized for smaller households, and they also require smaller parcels of property on which to build. Ranging from about $40,000 – $60,000, they are also much cheaper to construct than a traditional home – and they come totally preassembled, significantly reducing contracting costs.
Given that the average rent in West Virginia is about $720 per month, you will entirely recoup your investment in less than six years, far sooner than for other, more traditional investments.
Another draw of park model cabins is that because they are legally classified as RVs, they avoid many of the property taxes associated with traditional homes, which significantly cuts your costs.
As park model cabins come preassembled, there are no contracting costs
What you pay upfront is exactly what you’ll be paying: there are no hidden fees and no need to spend months haggling with contractors to build this property. It can be difficult to find a reputable home builder, and issues can still arise even with the most competent contractor.
With park model cabins, this point is moot: the cabin will be delivered to you totally preassembled, with the only responsibility being hooking it up to utilities. This significantly reduces the costs associated with building a new property, and should you choose to develop a cabin park on a larger piece of property, you can have the entire park assembled much faster than would be possible with more traditional construction options.
Park model cabins are highly durable, making them an excellent investment
Many newer homes on the market are simply not made for longevity, and it can be difficult to build a long-lasting house for a good price. These homes will often start to show their age much faster than older homes built to last, which means you’ll start paying thousands in repair costs within a shorter period of time.
This isn’t a concern with park model cabins. Because they’re built of full timber, they are extremely durable, even when exposed to harsh elements; many park model cabins can last up to 50 years without major repairs, which makes them an excellent long-term investment.
The bigger the house, the more problems that can arise: since park model cabins are so small, they are highly efficient, and any repairs necessary will likely be very minor. It’s unlikely you’ll need to perform extensive maintenance on any of these investment properties for decades or more, which is another boon for your bottom line.
As the economy shifts to embrace new trends, it’s important that investors keep up with the times and consider what consumers really want out of a house or vacation property. With smaller households and higher demand for affordable housing, park model cabins are the best way to capitalize on the tiny house movement. These properties are inexpensive, both in upfront costs and in general maintenance, and they are incredibly durable. It’s clear that purchasing park model cabins is the way to build a solid real estate portfolio, especially in beautiful West Virginia.