Investing in mobile homes

[Clayton Swansen]

Hi everyone. I am curious about investing in mobile/manufactured homes as rentals. The prices are much lower, and rent seems to be about par. This seems like a great way to create a lot more cash flow on my investment. Does anyone who has experience in this area have any words of wisdom on the subject of renting out such properties? Thank you!

[Thomas S.]

Cash flow is generally very thin due to the cost of maintaining low quality materials, paying lot rent and dealing with bottom of the barrel tenants. Most community owners know better than to actually own and rent the homes in their community. Renting the homes is generally a break even venture for community owners. If you want to invest in a real cash cow buy the community/rent the land.

There is a difference between a mobile in a land lease community and on a private lot.  Mobiles in a community are subject to lot lease rates and community rules that you are responsible for similar to a condo except governed by the community owner. Mobiles are a depreciating asset therefor in themselves not a investment. The tenant base is the lowest of the low, bottom of the barrel, in regards to tenant pool. They have a social mentality that you need to adapt to and can not set your standards too high while at the same time insuring they adhere to all community rules. You and your tenants must be approved by the community owner/manager. IN essence you are a tenant and when your tenant does not adhere to community rules you receive a eviction notice not your tenant.