Why don’t you like Mobile Homes?

Question

We love buying mobile homes, I’d love to help you love them too. Give me your reasons you don’t like them and I’ll give my counter response.

Adrian Smude · Answer

@Chris Gavre We typically buy the home & the land, but we do have some where we only own the home (we pay lot rent). The ones where you own just the home are less money to get into.  I don't know where you are at but in FL it's expensive to move & set them up.  You'll also have impact fees & setting up the utilities.  I don't like to work that hard.  We did not plan to have a huge number of lot rent homes so we decided we would pay the lot rent & have the tenant pay us.  If we were to grow this side of the business I would have the tenant/buyer pay lot rent.  I would tell the park manager if lot rent is not paid call me the day before late fees start & I'll pay.  Of course, I will go after the tenant/buyer for that money & they would be in default.  @Jordan Polon I do not know the Southern CA market besides it seems very expensive to me. lol  But I do have friends there who are doing very well in MHs.  They tell me everything is the same, there's just an extra zero or two on all the numbers.  You just need to start calling parks and asking the questions.  Do you allow rentals?  You'll know pretty quickly if they are a park you want to work with or not.  One of the parks we work with offered us 3 FREE trailers after we built the relationship up.  @Connie Chan interesting to hear they are that hot in your area!  They have definitely gained popularity in my area but still not the hottest.  I agree other investors can be judgy about MHs and they can look down upon me for investing in them.  Personally, I set my ego aside and make a joke like "You're right, mobile homes are terrible investments.  Just send me all your leads:)"  About half of our deals are leads from other investors & realtors.@Jo-Ann Lapin We agree owning the land is preferred!  We also prefer to find properties that already have the home in place, because moving & setting up is a lot of work.  Do you lend on old trailers with the land?

Jo-Ann Lapin · Answer

The keys is owning the land under them . The cherry on top is to find and existing lot that has all utilities  ready to go. Maybe a older house was once there! It is affordable housing and much needed .

Mark Brogan · Answer

@Adrian

We love them, it’s all we do

George W. · Answer

I dont like that all of the ones in my area have lot fees of like $500-600/mo and they dont allow you to lease it out to anyone eventhough you own the trailer.

if the ones around me let me lease them out I could get them cheap, fix and rent to own them but it is not on option.

Jo-Ann Lapin · Answer

Yes we do and have . Many of our dealers cart the old trailer off and donate it . Plug and play .

Connie Chan · Answer

@Adrian Smude they probably are the hottest area of residential real estate investing right now! I think the main downside is finding the opportunities since they’re getting harder and harder to come by. Also dealing with the potential judgement of other investors and friends who might think of it as raising rents on the people who are not able to easily move out.

Jordan P. · Answer

@Adrian Smude

I’d really like to get into mobile homes in souther California but I find I don’t feel like I understand the rental market, the property value, and how to find out which parks will let me rent these properties out. It just kind of feels like the unknown.

I’m currently a SFR property manager so this feels like my easiest entry into ownership considering condo prices are so expensive in LA.

Chris Gavre · Answer

Actually looking to buy one and get started. Do you typically recommend buying the land and putting it on there, or putting it in a mobile home park and paying lot rent?

Do the tenants in mobile homes typically pay rent and lot rent? or you pay lot rent?

Why don’t you like Mobile Homes?

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