Renting Out Mobile Homes
Recently I've known a few people who were selling their mobile homes pretty cheap. This one mobile home was selling for roughly 16,000. If I would have acted quicker I would have possibly bought the property and rented it out. My question to you is this. Do mobile homes generally rent okay? Is this something I should look into as a posibility for income? What pitfalls should I watch out for if I rent out a mobile home?
I'm a landlord already however
1) I'm new to being a landlord. (owned a property for under a year)
2) Not sure if buying a mobile home just to rent out is smart or not.
Your thoughts??
[addsig]
I have decided to stay away from mobiles and the reasons are
!) They depreciate really fast like cars
2) Locations usually less desirable
3) Tenants more mobile
4) Tenants lower class
5) Cheaply built
6) Harder to find parts, Windows, doors, etc are not standard const materials
7) Harder to resale
There are some positive points to owning and renting them
1) Great leverage. Lots of take my home please for 0 down
2) Loans may be paid off sooner
I do not know about cash flow but I would want plenty to get my name on one. Hope I gave you an idea or two
Ted Jr
You forgot the most important thing. Is this mobile on - owned ground, leased ground (in a mobile home park)? It is best to buy low and sell. Don't sell on contract, even if the contract is at a high interest rate.
I have made money in Florida buying homes in parks, but I learned that the monthly rent is an uncontrolled cost. I made it a goal, that a home had to turn in three months or I wouldn't buy it.
Good luck
Chuck
Compared to site built houses, mobile homes are VERY fragile. Water leaks especially can quickly cause major problems. Tenants tend to ignore small things and they turn into major problems.
Can be cash cows with proper management, however i prefer older MH's 5k and under. Great ROI.
Good Luck,
Shawn(OH)
Rental of MH in MHP is normally prohibited by the MHP...they quite normally allow only BUYERS of MHs to live in them...no tenants.
Of course the MHP is itself a Landlord, because it is renting its space to the MH owner.
If you'll talk to the MHP mgr, he/she'll tell you quickly if they allow rentals.
I have two mobile rentals, they return 16% so far so good, the key is word of mouth rentals, and be very carefull with checking out new renter. Ourhawk
I don't do mobil homes--just because it's not my bag. It could be that I'm a snob.
I would never rent a MH but I'd sell a MH with a down payment sufficient to be meaningful to the buyer. I'd also do a heavy duty tenant nvestigation/screening.
But, before I did anything I would check with the rental office to get approval for everything. I would guarantee them in writing that I would cover any shortfall that may occur in the future. I'd also do some MH management stroking To be directed by the park to move the MH off the site, is a financial disaster.
I own two rundown mobiles, on tthere own lots, so far I am doing O.K. the return on investment is net 14% The Key is to take your time to get the right renters, I got mine buy word of mouth, and I took time to check them out, anyway I am going to buy another one. Good luck :-o
Remember too that if the MH is in a MH Park, it likely is against the MHP rules to rent the MH.
Owners only is the usual rule here in WA State, and no tenants would be allowed.
On pvt land, sure, you could buy and rent, although the pros mostly seem to recommend you rent the land but sell the MH on a contract. This way, the MH is theirs to maintain and insure, and theyr'e renting only the land from you.
I have 2 MH's that I have rented out for the last 5 years, they have been excellent investments and have actually gone up in value. The trick is to own your own land. I also have stick built houses and I get the same qualty tenants with the MH's ,If you screen you can get good tenants. Mine are in a small country town, I get $850.00 @month a piece for them.
Dont put them in a MH park, you most likely wont do good there.
Mobile homes are great long term rentals. i have 22 of them in a park that I own. They can be a headache from a turnover standpoint, but I deal in cheapies. A $16,000.00 one better be darn nice. I buy SFR's for $25-30K each and they rent from $450-$500.00 per month. You could have 2 MH for the same money and probably rent for close to that and double your cash flow. I have no problems with materials, but I don't look for perfect materials either.... they are rentals.
Good Luck,
Shawn(OH)