Hi Everyone, I am buying a mobile home this Saturday and have a couple of potential buyers lined up to do a Lonnie deal. Finally, my first success! The park owner I met with said another man is trying to sell his home in the park as well. It is a 3/2, 10 years old, and apparently very nice and in good condition. I have not seen it yet. He lives in another state and has it rented for 800 a month. The lot rent is $350 (including sewer and trash). He said the tenant will sign a new lease if he sells it. He is asking 12k, but I am hoping to get it for 9 or 10k. What type of expense reserves should I factor in? The renters are a couple with no children. He said they were only late on the rent one time in two years and he thinks they will be happy to live there a while longer. I feel like this should be a good deal however I cannot find much information on people holding mobile homes. As soon as these tenants left unless I found other quality ones I would sell it, holding the note. Thanks Eric

Speaking of particle board (which Jerry mentioned in an earlier post), do standards now require that floors be made of plywood rather than particle board, and if so, when did those standards change (i.e., when would be the latest year in which particle board could still be used)? Or can floors still be made of particle board, even to this day? Thanks to everyone for all your most helpful comments!

@Eric F. I bought some land parcels with mobile homes on them. Each parcel has 1 mobile home. We do not own the mobiles and collect rent for the land. One of the home owners has been there 30 years and had several different mobile homes, now having a new double wide. They told me that they are never moving. Seems like perfect tenants. They are responsible for all house repairs as I don't own the mobiles, and they pay rent for the land only.

Mobile homes as rentals?

Sebastian Gast

Investor · Denver, CO · Member since 2010 · 99 posts · 20 votes

12y

I can't give you a specific response to your question, but I will share with you my experience owning and renting a mobile home. Mine is very old (1981), and it is a rehab, but it has insane cashflow. My space rent is 410 and I rent it out for 1100. I paid 24k for it. The only problem with it is that it is old. I have replaced several runs of poly plumbing which is junk. I replaced the carpet. I have dealt with roof leaks. I needed to do some exterior repair. I also had an electrical issue I had to call an electrician for. Granted, this is over a 3 year period which still makes me profitable, but I worry about re-sale... I think this is one of the biggest problems with MH investing. Places age much quicker and don't appreciate considerably (if it all) with value. The other issue with MHs is you will get lower "quality" tenants, so screen carefully.

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Troy Bevans

Real Estate Investor · Davenport, IA · Member since 2013 · 71 posts · 17 votes

12y

I am on my first MH right now and think my strategy is to purchase the MH, make repairs as needed, rent the MH for the first year to recoup some dollars, then ponder the idea of selling it in year two. If my first year tenants worked out well and decided to renew for a second term, I would hold off on the sale. I have my tenants selected and they move in November 1st, so we will see how all of this goes : )

I am still perplexed on the SAFE Act, so I am wanting to make sure I am staying within compliance before attempting the sale of the MH, as seller financing was a huge key in this side of the business.

Mobile homes as rentals?

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