Mobile Home Ground Rents -- Pros and Cons?

Question

Hi All! I am running numbers on a property for sale: 2 lots side-by-side containing 3 mobile homes. There is one well serving all 3 MHs and they each have their own septic tank with one shared drain field (installed in 2000). I have never invested in something like this before and have some questions regarding the pros and cons of a ground rent only type of investment. It seems like it would be a hands-off type of deal, as the tenants own the MHs and take care of all the maintenance.

Here are some questions:

What happens if they stop paying rent? Do I give them a Notice to Quit and have their MH moved off the land?

Do I need to purchase any insurance if I am renting the land only?

Are there any long-term strategies I should have in mind, or am I limited to continue running it as a MH lot?

Is there any way to add value to a property like this?

Thanks!!!

Joanne Santos · Answer

Hello Beth,

Would like to follow you, and see what answers you get on this topic. My brother purchased a mobile home in Florida, and he wants to sell it because he travels a lot, and doesn't have time to maintain it. However, I'm on taking it off his hands.

I'm new to mobile homes, and I would like to learn more on how how to manage it. In the meantime, I will be doing some of my own research on mobile homes.

Please let me know, if I can follow you.

Be Safe,

Joanne