Hey there BP family!! I'm a newbie from SC, and I took the advice of what many would tell you, network. I ran into a daily acquaintance. We were discussing REI, and he mentioned mobile hme rentals. I'm fairly new to REI, he offered a website www.mhvillage.com. Any help or advice towards entering this niche?
There's basically three main types of mobile home investing: 1) Lonnie Dealers who invest in mobile homes inside Mobile Home Parks; 2) Land Home deals where you buy a mobile and the land it sits; and 3) Mobile Home Parks where you have lots of mobile homes and decide whether you rent them or the tenants own them and only lease the land from you.
Each strategy has their plusses and minuses, and there are books about each one of them on Amazon. For number one @John Fedro has a lot of resources on this website, number two I consider @Curt Smith to have a very good model; and number three I always look to the guys at Mobile Home University and their Due Diligence Manual and Home Study Course as the bedrock for the basics. There are also several other teams (e.g. Park Street Partners, Mobile Home Park Academy, etc) that have good podcasts to supplement.
There is a whole section dedicated to Mobile Home investing. Post any questions you have there and you will get plenty of answers from seasoned investors. Have fun!
Thanks @Jeffrey H., this is great info and really insightful! I appreciate the info my fellow BP member.
If you consider the route of buying homes in a MHC your biggest hurdle is going to be finding a cooperative Community owner. Most Community owners will not approve rentals in their community.
I live in Port Elgin, Ontario right on Lake Huron. We have a year round mobile home park owned by Parkbridge just on the edge of town. I thought it might be a great idea to invest in a mobile home as a rental unit since SFH prices are through the roof in my area.
In the process of doing my initial due diligence I have come to find that Parkbridge is not exactly friendly when it comes to rentals inside the park base on some discussions with a local real estate agent. It looks like they will allow sublets but at an extra administration fee and subject to their acceptance of the tenant.
Since Thomas had mentioned in this thread that finding a community owner who is open to rentals can be difficult I thought I’d post on this forum to see if anyone has had any luck convincing a community owner to allow rentals or if someone has come up with another strategy that is typically more acceptable to the community owners.
Thanks in advance for any suggestions.
Yes, as a MHP owner I can tell you , it is not something we love to do. Letting someone else have a rental in your park is essential giving up some percentage of control in your investment. There are a lot of different moving parts in managing a park and when they run smooth it can be a great asset, but when you give up control and things start running rough they can be very hard to get back. It is hard to control your tenants, cleanliness, age of homes, overall condition of the homes and the tenants when you don’t own the homes. I just posted earlier about how we let investors or outside owners enter our parks, essentially they have to bring value to the overall park, usually by bringing brand new homes in and letting us be the property manager on them. Before we were park owners we did have success in a couple of local parks, mainly the same as what we want people to bring to us now. If you bring value to anyone’s park I can not see them saying no, we use to bring value to Parks by telling/showing them the nice quality vinyl sided, shingle roofed homes. Freshly updated clean homes add value to the overall parks value, so value add. You can always try to find park owners that have homes they want to sell that need updating also.
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