Mobile Homes as an Investment????

3 Replies

Ok....this is crazy (I normally would think) but does anyone have any experience investing in actually investing in a MOBILE HOME?   its crazy for sure but here in the NW its very difficult to make any kind of RE work out numbers wise.  I have found a MH that is in really good shape, in a decent location, and I believe the numbers work out well BUT I have never contemplated a mobile home as an investment.  I would assume that at best I should expect to maybe get my investment back but certainly no appreciation return.  

Just wondering if anyone has done that or not.  

My number one fear being that the LAND is not being purchased and I would have to dig deep to find out about whether the park owner could remove all units and develop or sell the land separately (that is the best buy and hold deal in the world!).  

Any input would be greatly appreciated.  

Patrick

Is this for a buy and hold or flip?

I like mobile homes. I wouldn’t spend a ton on a MH , especially if I didn’t own the land. Many parks (at least in N.C.) won’t let you sublet - ie you rent the space and sublet trailer to end renter. If you can and you can lock in a lengthy lease, and the numbers are great, I would.

Many folks I have talked to who do MH rentals like older renters (55+ crowd).

I do not personally have any MH rentals. Depreciation and maintenance are real concerns for me with buy and hold MHs.

thanks Lauren B...….Yes....I re-ran some numbers once I received the Lot rent and my early assumption was a little lower than the reality.  Again, the Northwest is a killer.....lot space for a tight lot in a lower income demographic area was 700.00 a month......sheesh!  I am really struggling to find a local investment that provides a return.  I swapped my traditional 401k over to a checkbook 401k and am anxious to park some money but am struggling to make that first move. 

Your point about sublets was well put also as that was not high on my  radar but I was going to check that out as well as it did cross my mind.  

Cap rates in the local market barely reach above 4%.  Doesn't make any sense.  

I must be looking in the wrong spots.  Need to dig deep!  

Thanks again!


Originally posted by @Patrick Hall :

Ok....this is crazy (I normally would think) but does anyone have any experience investing in actually investing in a MOBILE HOME?   its crazy for sure but here in the NW its very difficult to make any kind of RE work out numbers wise.  I have found a MH that is in really good shape, in a decent location, and I believe the numbers work out well BUT I have never contemplated a mobile home as an investment.  I would assume that at best I should expect to maybe get my investment back but certainly no appreciation return.  

Just wondering if anyone has done that or not.  

My number one fear being that the LAND is not being purchased and I would have to dig deep to find out about whether the park owner could remove all units and develop or sell the land separately (that is the best buy and hold deal in the world!).  

Any input would be greatly appreciated.  

Patrick

Should be the 5th video or 2nd row/middle video. They are #Crushing it! 

https://m.facebook.com/azflipguys/video_grid/?play...

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