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How to Find Investor-Friendly States to Invest

Where you invest is just as important as the properties you invest in…

Before inking that mobile home park deal, make sure you are investing in the right area for optimal success, and best net benefits.

Some US states, counties, and even cities can yield far better net returns, and can be far more pleasant and stress-free to invest in than others. Knowing this in advance can help mobile home park investors to dramatically cut down their research, and hone in on the best opportunities, in the best locations, and get more out of their time and capital.

So what factors should mobile home park investors be looking at when shortlisting destinations to invest?

Landlord Friendly States

US states vary greatly between whether their real estate laws favor landlords versus tenants. Clearly those investing in buy and hold properties for income may find dramatically better results by sticking with those jurisdictions that typically rule in favor of investors.

Various factors can come into play here including:

  • A landlord’s right to access their own property
  • Time required to evict
  • Cost to evict
  • The compensation available to tenants and their extended contacts for frivolous items
  • Trends in which party judges typically side with

Renter’s Insurance Ranks These as the Top 8 States for Landlords:

  1. Texas
  2. Indiana
  3. Colorado
  4. Arizona
  5. Florida
  6. Kentucky
  7. Georgia
  8. Mississippi

Others have posed Arkansas as a friendly state for landlords. This is in contrast to states like New York, California, Illinois, and Massachusetts. In Chicago investors have complained that tenants have a significant incentive not to pay rent for 5 months before they’ll be evicted. In Massachusetts landlords are held to high standards even when tenants are not paying and should no longer be in the property. Tenants in MA, and their extended family can even easily sue landlords for emotional distress.

Rental Controls

Rent controls are considered a major nuisance by many real estate investors. Many believe they are actually counterproductive for everyone. The bottom line is that they limit how much landlords can raise rental rates. This is something you need to know before making a mobile home park purchase.

Rent control is more common in some states than others; such as New York and California. However, rent limiting regulations can also be on a county and city basis. It can even be property specific. Some notable investors have succeeded in forcing out protected tenants, but that isn’t a venture the average investor probably wants to bet their capital and reputation on.

States where investors should expect to encounter rent controls include:

  • New York
  • New Jersey
  • Maryland
  • District of Columbia
  • California

Price to Rent Ratio

Price to rent ratios reveal how much you pay for an asset versus how much cash flow it will produce. SmartAsset shows that you’d have to buy a $540,240 home in San Francisco to rent it out for $1,000 per month (a 45.02 price to rent ratio). Contrast that with Detroit which has a ratio of just 5.6, where you can rent out a $67,200 home for $1,000 per month. Seeking Alpha breaks down major US markets even further with heat maps of major US metros based on price to rent ratio.

Financial Stability

The financial strength and fiscal liquidity of local government shouldn’t be overlooked either. A bankrupt city or state can have big consequences felt in many ways. Detroit is one of the most significant examples of this. In tough times local law enforcement can also be incentivized to drive up revenues through new levels of toughness which can have an impact on landlords through their tenants. Raising taxes is also a common way for authorities to make up for shortfalls. We’ve seen this consistently in New York, and Chicago recently unleashed a massive collaboration of tax hikes and simultaneous efforts to reduce pay for key workers. So make sure they’re healthy!


High taxes can impact investors in a variety of ways. They can potentially impact how much locals can pay in rent, property taxes on mobile home parks, how high property values can rise, resale appeal, and net profits for real estate owners.

Property Tax Adjusters Names the 4 States with Lowest Property Taxes as:

  1. Hawaii
  2. Alabama
  3. Louisiana
  4. Delaware

It’s important for investors to look at overall taxes which may impact them directly, and the prosperity of the destination in the future. High taxes tend toward scaring away business, jobs, and residents, and that bad for the rental business.

Forbes Names 5 of the Most Business Friendly States as:


  1. Wyoming
  2. South Dakota
  3. Nevada
  4. Alaska
  5. Florida

Money-Zine offers a complete breakdown of the best and least tax friendly states by rate here.

Where you may retire and live in the future may also influence your decision of where to invest in mobile home parks. Will you want to live near your assets? How will your choice of retirement destination impact your net income and the legacy you can pass on?

Equity Trust Names the following at the Top 6 States to Retire as of 2015:

  1. Wyoming
  2. Alaska
  3. Florida
  4. Mississippi
  5. New Hampshire
  6. Nevada

Investor Friendly Real Estate Services

Where you can find investor friendly services and vendors may also play a role in where to invest. Can you find local real estate attorneys, Realtors, title companies, and financiers which are investor friendly?

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