I have a friend looking to sell his mobile home. It's 23 years old and in good condition. Two bedroom, 1 full bath, and 1 half bath. Newer siding and skirting. Roof is 10 years old. In a great mobile home park. Lot rent is 190 a month. Owner of the mobile home park plans to raise lot rent to 200.00 a month in the next two years.
My buddy wants 9,000 for the mobile home. He purchased a house and no longer needs the mobile home. Taxes are 80.00 a year. Insurance is 25.00 a month. For a 4 year personal loan i'm looking. At 220.00ish a month.
Mobile home rent in my area is 550-600.00 a month. I was thinking 600.00 a month is fare.
It's minutes from the high school and grade school. 600.00 a month would give me around $145.00 a month profit after expenses.
Tenant would pay all utilities. Mobile home park owner takes care of snow plowing. I'd take care of mowing.
Would you do it to get your feet wet?
Hi @John Burtle,
I don't know anything about renting mobile homes or park investing, BUT I do know of a few people that have made pretty good money renting out mobile homes. A number of people that I knew when I lived in North Carolina got their start this way.
I wouldn't knock it and the only think I would add is to consider how much it costs to repair and maintain them. I don't really know, but that would impact your repairs budget and your cash flow above.
Best of luck!
@John Burtle why would you not do it?
Hey John Burtle I like the idea! I did post about the same sort of topic a while ago and I was told to be 100% sure that the mobile home park lets you rent out your own personal unit without any fees or problems. Not sure if it would be a problem for you but just wanted to share! Good Luck!
I was too late on the deal. The trailer court does allow what I wanted to do
Some guy walked up with 5,000 cash and they took it.
For future reference- I'd say 80% of parks here don't allow renting. If you found one that does. Market there. Do a mailing to homes in that park, make friends with the park manager, I think mobiles are awesome rentals.
I have several mobile homes and like them, but I own the land on all of them. I would have passed on the deal you were presented. The lot rent was the killer. Having only $145 after hard expenses wouldn't allow you to save reserves for vacancies or repairs which you will have on a 20 year old mobile.
Boy did you luck out! That deal, just from your figures, was a total loser: 220+25+190+10(taxes)+50(vacancy)+50(cap/maint, ridiculously optimistic)=$535 per month. No appreciation, $10/month lot rent increase coming. And one month vacancy might be optimistic. If you rented it at $550, you'd be "making" $15 per month. At least that would pay you $3/hr for the 4 hours you'd spend cutting the grass every month!
Yeah I forgot that. Don't cut your renters grass unless they are paying you to do it!
Look up @John Fedro . He is the best in the mobile home rent business.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing