All Forum Posts by: Mica Moore

It's a different animal than Residential Property (you won't have the same tax deductions or appreciation). It is a depreciating asset.   But it could work.  The first thing to verify is that all the homes were built after 1978 so that you can find financing.  I doubt that you can finance all in one (unless you have a private investor or owner carry). Otherwise you would have to go with bank financing for Personal Property which has higher rates and higher LTV requirements.   So then you would need to price and finance them separately (add it up and see if it works).  If  the numbers work the next step like I said is to thoroughly investigate the Park & Management.

You want to know everything you can get your hands on regarding the park - they have a lot of power so you need to know what you're getting into.  Also if the home is sitting vacant while you are trying to find tenants - you still have to pay the lot rent.  Keep that in mind. Mobile homes are higher risk, lower returns but they could work.

The real money in mobile homes is buying them with cash, making small improvements and selling them on installment payments.

Are they considered Real Property or Personal Property? In my state (I don't know if this is a federal or local statue) MH are not considered Real Estate which means they are more difficult to finance, maintain and sell.  I also know in some cases they can be converted to Real Property - but if they are in a park that would mean the land is not owned so you couldn't convert it.  

Also first place I would start is with Park Management - to get a feel for the goings on there.  The Management makes a huge difference!  

Example: Park 1 has their rules too strict that it is very difficult to sell properties within it -- hard to get qualified buyer. Always being micromanaged and hard to get tenants to stay.

                  Park 2 is too lenient in their management and residents are deteriorating the property values. 

You want a healthy balance.  Strict enough, but not too strict.

@Paul Sian.  I get the vibe that it is a vastly different demographic (in terms of job stability & crime) than what I am used to out here in Reno, NV.  Here we don't have too many 'high crime areas' or large populations of unemployed individuals. We also don't have decent rental properties under $500K.  Neither do we have very many old buildings (the West is so much newer, as you probably know).  On the surface it looks like an ideal market for a first-timer like me (although I have never owned rental properties, I used to be a PM here), I get this fishy feeling that something is off.

Shower inserts for rental property's - 100%.  Cheaper and easier.  For my personal home? No way they look too cheap, so tile only for me.

I have my eye on Cincinnati due to the affordable pricing (to purchase my first investment property - buy & hold). Looking for 2-4 units to keep it Residential not Commercial.  I see that the buildings are pretty old, and I imagine this is or could be a maintenance nightmare. The Cash Flows that I have seen on the MLS look excellent (on paper), but what are the realities?  I guess that ties with my main questions - why are properties so cheap? What's the catch?  High maintenance?  Tenants who can't pay rent regularly? Low demand for these units?  If so, that looks like a recipe for disaster - spending money on maintenance while have no paying tenants.  Am I too cynical or is this an obvious red flag? What's the true ROI like out there?