All Forum Posts by: Mark Gruetzmacher

@Jason Evans What year is the mobile home and what size?  Is it on a permanent foundation?  I think you will find that mobile homes always go down in price.  Leading is tough on them once they get older as well.  If it is under 15 yrs it is easier to get lending.  Insurance is the same way, as they get older the insurance changes and gets more expensive and coverage's even change and not for the better.  That is one of the reasons I sold mine a few years ago.  Now that is my experience dealing with banks and insurance here in my area.  Might be better off selling and getting out from under it sooner than later.  But do some checking to be sure.   

@Dan Bosak I have never bought homes in the parks for only owner occupants.  Depends on your purpose of buying the mobile home.  If it is for a rental then obviously you can't do that in that park.  If you can purchase the home at a real big discount vs market price then it might be feasible.  But being that lot rent is $600 sounds like it really kills the deal.  $600 sounds outrageous for lot rent.  Around here I am used to $200-250 lot rent and rents from $550-800.  I think I sure would pass based on the lot rent price and the owner occupied only status of the park.  Good luck.

@Harold H. I think the first step would be to start looking to see what is out there.  Check out locations and even check out local dealers and see what they have for used homes.  Craigslist is also sometimes a good place to look.  Go out and see what your market is and do some research.  Check out local MHP's and see if they allow you to be an owner and rent out the home in the park.  Some do and some don't.  

As for inspections, I am sure you could have a house inspector come look at it but depending on the price of the home is it worth it?  I think ideally you would want to buy some newer homes at least in the 80's but preferrably in the 90's or 2000's.  They are so much nicer and in the newer years.  

What to look for, hmmm, I would look for something at least in the 80's or newer.  Myself I like stuff 90's and newer, I would prefer a shingled roof and 16wide if possible.  Really all depends on your market.  You could find some older ones for cheap and come out real good on them as well.  But with any mobile home there is always more maintenance.  Really personal preference and budget.

Selling financing works if you can find someone that wants to do that.  I think Bank financing is tough and high interest rates follow along with mobile homes.  Most local banks want to see something 15 years or newer but I think there are national banks that lend as well.  I know interest rates around here are high over 10% maybe even 15% for mobile homes.  

I am new like you and have started in the mobile home side of things because the out of pocket is cheaper.  I have found some deals but they all need repairs which is nothing new to me.  Good luck in your investing.

Mark

@Austin Richey I know people that have wholesaled mobile homes by me.  I have not done it.  But here in my state they are on title's just like cars, you go to the treasurer and transfer title.  The few I know about here just transfer from seller to the new buyer by passing the middle man.  I doubt that is the correct/legal way though.  Here when the title changes hands the taxes have to be paid current and for the most part our taxes are paid a year in arrears.  So you have to pay for what's due last year then you have to pay for the whole year that you bought it in.  Then if it is after Nov. 1st you have to pay for the following year as well.  So it depends on how your state does it.  Title transfer is only $5.00 for the actual transfer.  I would think if you wanted to wholesale one, you could check on taxes, have the buyer credit you what's due to the closing date and then you go in and do the transfer and pay the taxes.  Then your buyer can buy it from you and you could add on the taxes you paid for the rest of the year or build it into the price.  Now here the title's take anywhere from 2weeks to 2months to get back so that doesn't speed thing up here for me.

Again that is all based on my state. Here is some info for IL.

http://tax.illinois.gov/individuals/salesandrelate...

Good luck

@Leslie A. 

  Thanks for the reply.  Yeah just starting out small.  I have a program I used for some other stuff I do and might use that.  It sort of like quickbook or quicken but it is free.  Been using it for a few years for simple stuff.  Mainly was concerned about the initial repair to make it rent ready.  Been watching some of your threads on RV's and that is awesome you can do that down there.  Wouldn't work up here in the cold weather.   Thanks again for the reply and happy investing.

Hey Everyone, If you caught my last thread you will know I bought a couple mobile homes to be used as rentals.  Both of these mobile homes need repairs, flooring, cabinets, sheetrock, windows, siding, etc.  Once fixed they will be rented out.  I am putting everything on a spreadsheet and was thinking about how they would effect the rental income as expenses or do they get added to a basis instead.  Not sure if this would be the correct forum for this question but thought I would ask.  Also what do you used to manage all of the expenses and income.   I am trying to plan ahead of tax season.   Figured most of you might know since you have mobiles as well.

Thanks

@Kevin Miles 

 Awesome, I really appreciate the links you provided.  Gave me lots of info.

@Aaron Montague 

I am new to this type of niche as well but I think it is can work just fine depending on the numbers. I have 2 going at the moment. Both need fix up then will be ready to rent. THe lot rents here vary from $215 to over $300 but most being in the $250 and under range. Depending on the size and condition rents seems to be in the $500-800 range. For the amount of investment, I think the number are workable. Good luck.

Hey everyone, I just bought 2 mobile homes to use as rentals in my area.  It will be a little while before they are ready to be rented out.  Obviously mobile homes don't necessarily attract the best of tenants either.  I am just starting out again after 12 yrs of not having any rentals.  What the best way to move forward as in lease agreements or not, pre-screening, credit check and backgrounds.  

Years ago I had bought a book that had all the landlord tenant laws in it for the state I was in at the time.  Not sure if they have one now for where I am either.  I have an email into a local attorney I have done business with to get his suggestions as well.

Suggestions?

Thank You.

Mark

@Fernando Nova Are you asking which is the better option to persue?  Rent to own vs buy and hold and collect rent?  Not real sure which is better.  I think the rent to own type really appeals for alot of reasons BUT with the new laws and Safe Act you are pretty much out of luck to legally do the rent to own unless you have a company qualify the buyer.  I am not too knowledgeable with the new laws and safe act.  But from what I have read on here, that option is mostly out now due to the new laws.  Maybe something else will chime in.  

If the numbers work out for Buy and Hold then maybe pursue that route.  I am doing just that with my current mobile home I bought.  I plan to just hold  on to it and collect rents.  Should have my investment back the 1st year.