Exit Strategy When It All Goes Wrong - Mobile Homes

[Carey Edmund]

Hello All,

I am considering mobile home investing as my next real estate step. The forum post have been enlightening but I am looking to have one big question answered. What if I own a mobile home outright and everything goes wrong? I can't sell it, can't rent it, and don't care about the money, what do I do? If I own it outright I can't turn the keys in. Do you just give it away? I am asking this because I really don't understand the MH investing space and I look at this as the worse case scenario. Thanks in advance for the responses!

[Sam Parkins]

@Carey Edmund 

"What if I own a mobile home outright and everything goes wrong? I can't sell it, can't rent it, and don't care about the money, what do I do? If I own it outright I can't turn the keys in."

If you don't care about the money, which we all do or else we wouldn't be doing this, then you can most certainly give it away. If it's in a park the park will take it 9 times out of 10, if not run an ad for a free MH and you'll get rid of it within a couple days. Here's some other options depending on your urgency:

• Scrap it (do it yourself and make a few bucks - otherwise call a contractor or better yet run an ad and folks should show up out of nowhere. They scrap it for free so they can keep the profit)
• Move it somewhere and use it as storage
• Take off the top and use the frame to build a "tiny house"
• Contact a mover and negotiate a "move referral fee" and offer the home for free on the internet and suggest the mover to move it
• Use it as storage where it is
• Use it as an office
• Contact donation charities and see if they'll take it
• Contact local gov. agencies to try to donate to them for housing 

If you're not currently investing in MH's but your pondering the worst case scenario this is a great question. Be aware that the compound question on top of this is that more likely this non-selling and non-performing asset is probably located on someone else's land (a park) and that your clock (lot rent payment) is ticking as you decide how to liquidate your home. Due to that, the best advice is to try to give it to the park or offer for free to someone else so that you get out from under the lot rent. 

If that doesn't work, and money really isn't an issue, I'd check with the DMV about abandoning the home/title so that you're not on the hook for lot rent in subsequent months. Never done that but there has to be some way to get rid of the thing if you can't give it away. All else fails call the fire department and see if they'll burn it for you :)