I am looking at both mobile homes and single family homes as options for cash flowing rentals. In my area a 3 bed 2 bath mobile would go for an all in price around 50k but the same size single family would run about 80k after rehab. Both would rent for 800+ but the mobiles tend to already be on larger lots that would have room for a few more. Obviously the appreciation would be on the single family but if I am looking for the cash flow what things would you consider in making a decision.
That all I’ve got so far. It’s at least worth a listen.
If you are purely interested in the cash flow and not appreciation, I would go with the mobile homes. I personally like to have better appreciation (but make the deal based on cash flow only), but its all about your goals.
I can say this, you are paying top dollar for a rental mobile home at that level. Also, mobile homes don’t appreciate. What the interviewee does is buy mobile homes at the sub 10,000 level which need minimal work then rent or lease option those. He requires about 3,000 down for the lease option and therefore he gets back most of his money and he runs everything based on getting all money back in 10 months. He has started to look into mobile home parks and renting the land out as well.
Sfh may appreciate in value and are easier to rent with typically better quality people.
Just because some mobile homes come on bigger lots does not mean you can add another. You will need to look into zoning and do perk tests. Never assume you can add another dwelling to the land until doing so. I have 2 double wides and 9 stick built sfrs. I will tell you the stick built homes are much more energy efficient, way better built, and are worth much more. If I need cash I do a cash out against a stick built house. They are far easier to get cash quick out of than a mobile home. But mobile homes do have great cash flow. I just prefer stick built. More reliable, more desirable, worth more, and I charge about 20% more for my comparable stick built homes to my double wides.
Thanks for all the replies. For my area it may seem reasonable to do both at the same time. The comparison above was for a few dw that were newer and very clean in larger lots in established neighborhoods. I could do them cheaper as a reno in a less desirable area.