Mobile homes as rentals?

[Eric F.]

Hi Everyone,

I am buying a mobile home this Saturday and have a couple of potential buyers lined up to do a Lonnie deal. Finally, my first success!

The park owner I met with said another man is trying to sell his home in the park as well. It is a 3/2, 10 years old, and apparently very nice and in good condition. I have not seen it yet.

He lives in another state and has it rented for 800 a month. The lot rent is $350 (including sewer and trash). He said the tenant will sign a new lease if he sells it. He is asking 12k, but I am hoping to get it for 9 or 10k.

What type of expense reserves should I factor in? The renters are a couple with no children. He said they were only late on the rent one time in two years and he thinks they will be happy to live there a while longer.

I feel like this should be a good deal however I cannot find much information on people holding mobile homes. As soon as these tenants left unless I found other quality ones I would sell it, holding the note.

Thanks

Eric

[Jerry W.]

I lived in mobile homes a lot growing up and my first 4 places I lived after getting married were mobile homes. I am part owner of 1 now. The biggest drawbacks are higher maintenance, they go down in value not up, and they are very vulnerable to damage from neglect. Frozen pipes due to a very cold snap or skirting problem can cost you $5K very fast. Keep on top of maintenance as a roof leak or loose piece of siding could also cost several thousand dollars if not caught quick. They are good starter homes but require more vigilance than houses. Floors are usually particle board and a leak can cause you to have to replace the floor of a bathroom if not caught immediately.