Buy and Rent Mobile Homes??

Question

Whats Up You Guys! So I just ran across a renovated mobile home and had a couple questions for anyone with experience with this.

It is a 3 bed 2 full bath and is all updated throughout. What have your experiences been like with renting a home like this in a mobile home park?

Do you typically receive significantly less rent because of being in a mobile home park?

If anyone has scenarios or specific experiences it would be appreciated!

Steven J. · Answer

@John Arendsen is totally right about checking with the MHP manager. They can make or break you depending on your relationship with them.

If you can rent it out you should be able to rent for comparable apartments with the same bed/bath combo. For example, if a 3/2 apartment is $800/month you could rent out a mobile for around the same but a portion of that goes to lot rent. If your lot rent is $650 it might not be worth it since you're still taking care of the home. If lot rent is $400 that's $400 - expenses in cash flow.

Ideally, you sell on payments. You can demand a bit more per month, demand a down payment, and you don't have to do repairs.

Rachel H. · Answer

Since a portion goes towards the lot rent, it may not be as much as owning the realty. Though, when buying real estate most times you put in more money than when you buy the homes as personal property. Each has its own pros and cons. Have fun investing!

John Arendsen · Answer

The very first thing you need to do is talk to the MHP management and find out what their sub letting policy is. Most MHP's do not permit it unless you're the legal owner renting/financing the registered. I've actually done several of these over the years but since Dodd Frank I've laid low. Too may kinks in the closet nowadays. At least that's the case in Cali. Could be totally diff in your neck of the woods. Good luck in any event.