Trailer House Rental(s)

[Chris Look]

We came across some trailer house units to possibly purchase and long term rent. All of them are rented now and have good cash flow. Several of them are not in the best condition, so we are looking at probably purchasing only four of them that are in good condition at first. Being new to this, what should I be aware of or ask about before we purchase them? I have a breakdown of the current owners costs (lot lease, utilities, rent rates, etc.) but nothing else proving these are accurate. My concern is that I am not getting all of the information and it won't work out the way I think it will. Any advice or thoughts would be great! Thanks

[Tim Olsen]

Definitely a LOT of things to consider!

They have the potential to cash flow several times what other properties will. The upfront numbers will look GREAT!

That being said. Typically the renters you will get, might not be of the highest caliber. This can potentially increase your costs through issues like missed rents, evictions or just additional damage to the property. 

You might not be able to use the typical screening processes like Credit Checks... You will need to get Very good at Listening. By this I mean, Thoroughly checking references! Ask previous landlords Lots of questions. Understand that you might be talking to a friend or family member posing as a landlord. Be certain to ask questions that might flush this out. Do Background checks or Check the repository.

Also, as mentioned, specifically older mobile homes just weren't built from the best of materials. Thing break easily and were very often built slightly smaller than commonly used items in hardware stores. Not to mention, they LEAK EVERYWHERE! Roofs and Windows leak and Destroy walls and floors with minimal notice. Floors are made of Particle board, not plywood, so small leaks under sinks or tubs will cause significant damage.

GOOD NEWS:  While Mobile Homes take a lot of getting used to, they can be very lucrative and have a really low barrier to entry. You just need to get accustomed to them.  Learn to Seal them up! Always maintain them to a certain standard. This will help you get a better tenant and help the bottom line in general. REMEMBER, Crappy Tenants will happily rent Nice places but Good Tenants are very unlikely to rent to rent Crappy Ones!