Looking into buying mobile homes to rent in beach towns / resort areas.

[Keith Belzner]

Hi BP,

So I had thought about even before I looked at REI, I know its not new but what are your thoughts on beach mobile home rentals? Living in Maryland there is plenty of beach towns withing 2 1/2 hour drive for most and OC Maryland is a family tradition for many around here. I have always gone to Rehoboth Beach De. My wife and have always thought about buying a MH as a weekend getaway but I saw the potential for profit.

We drove around last year looking at some MH parks that had homes for sale and wow, we found many that were under 10k that needed work but not a lot, 5k at most. With rents at 1100 - 1300 weekly with ground rents around 450 - 500 month to me the cash flow would be worth it,

Ex.

1100 (week x 4 x 3 months of summer)= $13200  (not including extended sept. season for weekend rentals)

$500 Gr = $6000 year

other expenses = $2000 (est )

$13200 - $8000 = $5200 cash flow year

after the first year I would look to buying at least one more 

Anyone here invest in vacation mobile homes? Looking for advise.

[David Krulac]

@Keith Belzner

Some parks don't allow weekly rentals but may allow yearly rentals.  I've been to many of the beach parks in DE & MD.  Some of the parks are only open 4 or 5 months a year.  Parks that I've been in in both DE & MD have gates or chains across the entrance in the off season.

The off season is very much different from in season.  OC goes from 500,000 people to 5,000 people off season.  Many businesses are closed and its like a ghost town almost.  Even though there is not much snow, I find the winters bitter cold with the breeze off the ocean.

I 've looked at buying in many of the parks, last time I looked at a place east of Rt 1 where a mobile went for $10k and only a few miles to ocean.  The places furthest from the ocean are less desirable.

A good friend of mine had a place at 50th st bayside, loved it and owned it for a long time.  He used it himself and let friends and family go there when he wasn't, but didn't rent it.

I've written here on BP before about season rentals.  The season is only 12 weeks from Memorial Day to Labor Day.  You need to make the whole years 12 month income in 12 weeks.  Other weeks rented is just gravy.