Investing in mobile homes

[Mike G.]

Any ideas on investing in mobile homes. I keep running into lot space rents. Are there any mobile home parks that don't have lot space rent? It seems like a deal killer cuz even if u get the mobile home for 4-6k and try to resell it and carry the note and finance the customer with rent they pay to you plus the lot space rent, your now in the territory of rent u would pay for SFH but your in a trailer. So any advice? I'm really interested in mobile homes.

[Bill Neves]

@Mike G. @Blair Russell

Blair has a valid point. Plus if in a park, you always have to check the park rules for options.

For instance, I have a winter place in Arizona. 700 units, in that park, that you can rent BUT the renters have to be approved by the park. Most parks have an approval requirement. Criminal background, credit score, base income and no evictions. Airbnb folks may not want to do that and may not pass that check.

I also live in Washington state and most parks there do NOT allow rentals. Residents must be owners or be buying their place.

You can definitely sell on payments for cash flow. Consider local rent (average in US is over $1200/mo for a 1 bedroom). You say rent is $400-600. So if your payment is $400/mo (plus the rent) you should be able to rent, or sell on payments, all day long.

Plus a mobile will have 4 walls, floor, ceiling, yard for the kids, private parking, etc. Beats a 1 bedroom for $1200+/mo any day.