Hey has anyone acquired a portfolio that includes mobile homes. There is an opportunity to purchase a portfolio of 6 total properties 3 units on one parcel and 3 on another parcel all on the same piece of land, however 3 of the units seem to be mobile homes. They are all rented and it looks like there could be a decent cashflow from this acquisition however my concern is that when I would try to refinance out to get my cash back, that the appraisal could be lower based on the mobile homes, has anyone faced anything like this before....I know this sounds a bit crazy so any info would be most greatly appreciated and if there is any additional info you need from please let me know thanks
I have heard that getting funding for MH's is difficult due to them usually being treated as a depreciating vehicle and not as a permanent structure. I would try to get the financing question answered before you buy! They might not even consider it real estate and only lend based on land value.
Thanks that makes a lot of sense. I will research this further with my financing entity
As a person who invests in MHs I'd say get your financing in line first. I have a private lender that finances mine from a self-directed IRA but have had no luck with traditional banks.
thanks for the info it’s really appreciated
Stick built will alway be valued more than mobile homes. I'm not sure how easy it would be to finance a property like that as it is an unusual property but I would start there first.
As a side note, I would think it might be difficult to BRRR a moblie home as they are generally valued significantly less and have less room to add real value.
yea I figured that about the mobile home part, it’s bit of a funky situation because it’s in a small town and there are 3 stick built houses and 3 mobile homes on the property but they want to sell based on the income it brings in but if it doesn’t show in an appraised value it would be no good for what I’m trying to do.
It all depends... if the mobile homes are on permanent foundation.
If they are not currently on permanent foundation, but can convert to such, then they become real property, and can get appraised as such.
And, then of course, be prepared to pay more in property taxes as well.
Instead of paying property taxes only on the land, appraisal will be much more including the homes, once they become real property.
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