Waynesboro, PA · Member since 2015 · 4 posts · 1 vote
Hey guys i was wondering just how would i go about this i wanna buy a few double wide mobile homes that are located in a real nice trailer park located on the out skirts of my town in Pennsylvania and are only going $20,000 or less and the lot rent is only $350 a month so i was thinking of renting it $800 a month ( just cuse ive seen a few horrible duplexes being rented out for $700 with familys already living there) these homes wouldnt be anymore then just a steady income for the next investment home is this a good idea to go with or is it a horrible way to start.
San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
9y
The first thing you need to do is get to know the park manager and/or owner. Find out as much as you can about the community and the type of clientele they work with. From there, learn the market and then decide if you want to pursue it.
If there's a lot of demand for this type of housing and the numbers work, it may be a good opportunity. Above all else, be sure you work with others who fit well with your personality.
Professional · Memphis, TN · Member since 2015 · 70 posts · 49 votes
9y
Not a bad place to start at all. I was doing something similar when I first started off. The numbers were equivalent. And you are seeing dollar for dollar/pound for pound why people like mobile homes.
My advice would be:
1. Quality of the park should be a priority.
2. Build a relationship with the park owners/managers. This is key to a long successful prosperous transaction. Do not force something that is not there.
3. Read a book written by Lonnie Scruggs "Deals on Wheels" to get a great idea. (You may have to adjust numbers)
4. Mistakes cost you more on your cash on cash return on investment with mobile homes. Use reliable people and make sure that you do everything to quality. Being frugal is ok. Being cheap is not. Make sure you understand the difference. If you dont, learn this. It will make money if done... right. And done right the first time. (Im speaking from what I learned-lol)
Investor · Box Elder, SD · Member since 2014 · 228 posts · 43 votes
9y
That is a good place to start. Like what has been mentioned, always check with the park first about rentals. Buying mobile homes is just as easy as buying a car. Same process in most states to double check your state. Financing though is almost non existent. Good luck.
Things to keep in mind, you must screen with very high standards. Those that rent MHs can often be the bottom of the barrel when it comes to tenants. Quality parks rarely allow rentals so you may have to turn to the lower class parks to invest.
MHs do not stand up well to abuse, the repairs on MHs are costly. If you talk to most park owners that have POHs they will tell you the rent is barley break even and the profit comes only from renting the land.
Any renters I have had all turned out to be the worst tenants. Thankfully not directly my problem as the home owner is my tenant and therefor the one I evict.
San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
9y
The first thing you need to do is get to know the park manager and/or owner. Find out as much as you can about the community and the type of clientele they work with. From there, learn the market and then decide if you want to pursue it.
If there's a lot of demand for this type of housing and the numbers work, it may be a good opportunity. Above all else, be sure you work with others who fit well with your personality.