Best Risk-Adjusted Returns
Per Green Street, Mobile Home Parks (MHPs) and Parking are expected to produce some of the best risk-adjusted returns of any property type. For decades, these asset classes have outperformed other real estate sectors and are well-positioned to continue to outperform them for the foreseeable future, especially given the current acute lack of affordable housing and increasing scarcity of parking facilities.
Lifetime Cash Flow
High-quality, irreplaceable real estate should never be sold, which is why our assets have no expiration date. From cashflow generated by these assets, investors receive quarterly cash flow distributions, allowing them more time with their families. The stable cash flow generated by mobile home parks and parking facilities reduce investor risk and ensure consistent and predictable passive income.
Inflation Hedge
Warren Buffett claimed that investing in residential housing “is a way in effect to short the dollar,” an excellent strategy in an inflationary environment. Mobile home parks and Parking have outperformed other real estate sectors for several decades. This strong performance shows no signs of slowing down, with rent growth well above inflation and parking demand projected to increase.
Recession-Resistant
Both MHPs and Parking have a long history of being affected far less than other asset classes in past recessions. Long-term guaranteed leases create reliable revenue in parking, and MHPs outperform during recessions because demand for affordable housing actually increases as the economy tightens.
Diversification
Because real estate investments tend to behave differently than typical stock and bond investments, adding them to a portfolio may provide broader diversification, enhance returns, provide significant tax benefits, and provide steady cashflow. At Sunrise, we also intend to diversify across assets, geographic regions, and asset classes.
Significant Tax Benefits
The tax code favors real estate investors. MHPs in particular are remarkably tax-efficient since the majority of the purchase price can often be depreciated in the first year. Investing passively allows you to get the cash flow and tax benefits of owning real estate, without the headaches of being a landlord.
