Davenport/Kissimmee FL - Rental Investments

3 Replies

Do manufactured/mobile homes rent as well as traditional Single Family Homes? Davenport is a very up and coming area as Orlando continues to grow (thus so do its suburbs). I would be purchasing the land as well (not part of a community with lot rentals). This is my first real estate deal ever, am trying to be cautious. Thoughts? Thank you!

I think the best answer I can offer is to consider cash flow over appreciation.  If you are looking for something to provide good cash flow, a mobile home on it's own land, might be a really good option.  However, you are not going to see the same kind of appreciation that you would see with a "stick built" (concrete built since we are in FL) home.  Your land may appreciate but the house itself will not contribute as much (or possibly any) value in the future.  

You may also want to consider a third option, which is very common in other states but not very common in FL, and that is to go with a manufactured home. This is NOT a mobile home. It is built in a factory and then attached to a normal foundation on the site. It is built with regular floor joists and framing, regular drywall, regular subfloor, not a metal chasis. It follows the local building codes for all construction, NOT the HUD codes. Once it is installed, it is considered to be a "stick built" home. It will never be relocated.

@Jenine Maggio

I own several mobile homes on private property as rentals. They cost only 1/3 to 1/2 as much as stick built of the same square footage.

They rent for 85 - 90% of what a similar size stick built home would rent for.

I do consider them long term rentals and am not concerned with appreciation - they’re not flips.

I can eventually sell them on contract and make good money as the ‘bank’ or replace the houses with new ones and then sell.

I’ve had one for 15 years that I might do that with now. The profit will be around $200,000.

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