Thoughts on Single Mobile Home Purchase - Do or Don't

[Shaun Palmer]

Hi BPer's

I have a question in regards to single mobile home for long term buy and hold. I am taking a look at a market in NC and I am noticing quite a bit of permanent mobile home "plans". Thry are also surrounded by class C/D SFR's. There are a lot of forum posts on buying/investing in mobile home parks but not necessarily on singular modular home purchases.

I would like to get everyone's opinion on buying and holding these type of properties for long term.  

To set the stage, the following are the market economics

• $30k for singular modular home
• Monthly Rent = $400-$650 per month
• Assume $5k for capex in order to get ready to be rent ready

Questions I have:

• Longevity / Lifespan of these homes
• Is anyone currently investing in an area like this and what are your thoughts? 
• Tenant expectations.  (I expect having more attention on tenants in this class of real estate)

Thanks in advance.  SP

[Rocky V.]

Insurance $600-800/property - I carry large deductibles

PM - N/A - my wife handles all PM on properties

Capx  approx. 18% - I own a construction company

Taxes - $800-1000 which is way lower than my standard SFRs

1976 MH - this was my first purchase which was purchased for $12K and I put $30K in rehab.  So its basically a new home. 

How will you be financing these properties?