Are mobile homes a good investment?

Question

Thomas S. · Answer

Mobile homes are a depreciating asset, However at your purchase price it has depreciated the majority that it will assuming you continue to maintain it. Expenses on a mobile, due to the low quality construction and the quality of tenant pool, will be high however. Probably 50% or higher long term.

Rent $850 - expenses $425 - lot rent $296 = cash flow $129/month.

If you assume a long term hold depreciating by 50% as well then you will need to deduct probably an additional $4500 from your income.

Michael Plante · Answer

I’ve asked the same questions here and have had no response from others who do it

Could it be the returns are so good that anyone who is doing it doesn’t want to ‘let the cat out of the bag’?

Eric H. · Answer

@James Gleeson Great morning.

I am not a mobile home investor but what I have learned from my brief investing career is

1. Invest in something that you understand.

2. Educate yourself and learn from other's mistakes to decrease your risk exposure.

3. All investments come along with some kind of risk.

4. Do not spend your principal.

5. Identify a budget for investing that you can sustain for at least 6-12 months to gauge success/failure.

6. Consistency is key.

7. Understand the numbers and how to analyze a deal so you can easily recognize a deal when the opportunity arises.

Two great books that I recommend on the topic of 'general' investing include Richest Man in Babylon and Set for Life.

Happy investing!!

Peace!!