Mobile Home Investing

[Caleb Reits]

Mobile Homes

Hey fellow investors, my name is Caleb, I am a local investor in Grand Rapids MI, and am trying to connect with other investors who have experience with mobile homes.

I would like to buy 10 of them within the next 5 years, to increase my passive income, what are some of the key differences in investing in mobile homes compared to investing in single family real estate?

Also is there anyone within an hour or two of me who is actively working on mobile homes, in parks or etc.?

[Dave Rav]

Hey Caleb!  This topic could require a longer post, but for brevity's sake I throw out a few pointers on the differences MH vs stick built SFRs:

- MHs are held via title and can be sold/transferred rather quickly.  SFRs are held by deed or other legal document and require a formal closing.  This closing is more expensive and drawn out.

-MHs tend to depreciate much faster than a house.  They are like cars in the way of depreciation.

-MHs are typically built differently than SFRs, especially the older MHs.  Older MHs have specific construction hardware (such as square-head screws) that aren't found in SFRs.

-MHs are significantly less expensive to get into, and often best cashflows that can be obtained on rental houses.

-MHs are affordable housing, which is in very high demand (and demand will only further skyrocket as inflation and other costs of living rise)

-MHs can be in Parks or on private land.  Be sure to complete due diligence on the Park before purchase of MH; some parks have rules for rentals.  Biggest one is they almost always require their own screening of your tenant.  (thus, the tenant is screened twice - both by you, and by Park).  Some Parks dont even allow rentals.