I am looking for a rental property investment and upon searching on MLS, I'm seeing mostly mobile homes within my budget and have good prospects of cash flow. What are the downsides of purchasing a mobile home as a rental property?
All responses are appreciated! Also, I'm from BC, so BC or Canada specific responses would be wonderful.
Thanks in advance!!!
The mobile home may have a monthly lot rent fee similar to HOA/Maintenance fees.. So that may potentially eat your cash flow. You may not own the land so appreciation may be at a minimum or non existent.
Flip mobile homes in parks for cash, then buy mobiles on their own land as rentals. You’ll get the same money in rent per square foot as you would for stick built at half or less the purchase cost.
Rent them for many years then maybe sell on contract for many more years of income. Neither appreciation nor depreciation has much effect on the process.
The best part is that you have little competition because the vast majority of investors look down their noses at ‘trailers’ and really don’t know how to monetize this lucrative niche.
After 20 years of being in the business I’ve learned a little :)
@Jerry Lucker great! this is def the asset class I'd like to start in!
Thanks so much for the insights!!! This is something we could look into with our meager budget.