Mobile Home House Hack?

[Dren Aguado]

What are your guys opinions on house hacking a mobile home? 

I think I could probably get a roommate to pay the monthly payment, so i can live for free. In Chicago, I feel like a mobile home is more in my budget and less risk because it's a brand new construction and turnkey. 

Would I be able to use this property to scale? will it be harder to scale my portfolio with a mobile home compared to purchasing a traditional home?

Thank you if you read this!

[Jonathan Klemm]

@Dren Aguado - Awesome idea and I think you should do it for sure.  One of the things I am working on currently is making decisions faster, this sounds like something you should move on and not look back.

Here in Chicago, I am not sure scaling mobile home houses is the right move, but regardless it will get you where you are going the fastest.  My suggestion is to use the stack method and after the mobile home get a house or 2-flat, then 4, then 8, etc.

[John Warren]

@Dren Aguado the biggest issue with mobile homes is that they don't appreciate, but instead they depreciate and get less valuable over time. They can cash flow well though. 

Being in your area, I would focus on saving up enough for a nice 2 or 3 unit. There are pockets of Waukegan where you can find a nice duplex in a decent pocket for cheap. Maybe find a way to rent weekly to folks who come in for naval base graduations? 

[Chris Varsek]

One consideration is that mobile homes are not considered real estate in Il, they are personal property.  While you may get to live for free, depreciation is unlikely and holding costs are high with park fees. If you do it, I’d write in a lease to own option for your roommate so you can live free, and have an exit strategy  

[Rachel H.]

@Dren Aguado If the home sits in a mobile home community, you'd just have to make sure it's allowed by management. Usually, the go over the rules and regulations before residents move in. This would be a good question to ask and bring up beforehand. Hope that helps! 

[Michael K.]

Quote from @Dren Aguado:

What are your guys opinions on house hacking a mobile home? 

I think I could probably get a roommate to pay the monthly payment, so i can live for free. In Chicago, I feel like a mobile home is more in my budget and less risk because it's a brand new construction and turnkey. 

Would I be able to use this property to scale? will it be harder to scale my portfolio with a mobile home compared to purchasing a traditional home?

Thank you if you read this!

Not a mobile home expert or anything, but if the purchase does not include any land you are not going to see any appreciation.  Getting a loan on a mobile home can also be tricky. I would consider rent hacking first. Lower/eliminate your rent payments and save up some money. Good luck!

[Crystal Smith]

Quote from @Dren Aguado:

What are your guys opinions on house hacking a mobile home? 

I think I could probably get a roommate to pay the monthly payment, so i can live for free. In Chicago, I feel like a mobile home is more in my budget and less risk because it's a brand new construction and turnkey. 

Would I be able to use this property to scale? will it be harder to scale my portfolio with a mobile home compared to purchasing a traditional home?

Thank you if you read this!

My opinion on scaling mobile homes using a house hacking technique is-" it depends".  Scaling usually happens when you're ability to use Other People's Money (OPM), whether a bank or private loans, increases.  That includes leveraging property you already own through refinancing.  If you intend to pay cash for all your mobile homes scaling will be tough if your cash is limited.  If you're able to find lenders or partners to support your strategy then scaling is possible.