First deal with a mobile home

[Jose Garcia]

BP,

This deal was just thrown on my lap with a mobile home. They want me to assume the loan which its 456 a month then the Lot rent is 350. I've never dealt with a mobile home and not too sure about any horror stories. I see some people purchase the mobile homes for less than 10k. What do I need to keep a look out for? Or for the experienced investors in the mobile home can you shine some light before I make any decisions? Thank you any advice is greatly appreciated

[Paul Jamgotch]

Many parks don't allow landlords. If on private property the lease may not be long enough which means a home move is in your future. How much is the payoff (not just payment)? How does that price compare to SIMILAR homes (year, size, quality, and foundation/slab) in the SAME park or location?

So, IMHO,

Step 1: If applicable, speak to park management or land owner to see if they accept landlords. Also check lease terms to make sure home will never require moving.

Step 2: Make sure loan is actually assumable and get payoff to determine price of home.

Step 3: Determine what similar homes rent & sell for in that park/area to make sure you are not assuming a loan that is higher than value of home and that you can actually make money.*

*hint: many retail buyers pay to much for their MH and might be why they are willing to walk away.

I'm not a MH investor so hopefully others will add their insights. In the mean time, I suggest you add some details if you want to receive quality, professional insights.