Newbie wondering the Pros and Cons of MH investing for buy and hold?

[Angela P.]

Hi all - I would really love an array of opinions from newbies that just started up through total pro's. I have two rentals currently, a town home I used to live in, and my mother's home that she left us kids and is in an LLC with my sibs. As you can see both of the properties didn't take a lot of work to find, I am still looking to really buy my "first" buy and hold investment property.

Husband and I have been saving for the last 9 months to go get our next property to add to the portfolio, and originally our plan was townhomes and single family homes. I've never really thought about or considered mobile homes before, and a multi mobile home listing caught my attention. 4 mobile homes for $90K?? Sounds like a steal when I am thinking and comparing to TH's and SFH's.

Do these rent for similar amounts (still less I am sure but somewhat similar?) I can rent a SFH 3bd/2ba for $1750-$2000 right now - what do MH's rent for on average? The inventory is SOO low right now I'm struggling to find some of that information.

Rental income and super low mortgage aside, plus I do realize I wouldn't own the land, the park does.

What else do I need to know more about if I decide this is the next step for us to make sure I am successful?

THANK YOU so much for your advice in advance.

Angela

[Jon Klaus]

I've got mobile homes on land that mostly rent for $875-$1425.  All cash flow well because I bought them for a lot less than comparable conventionally built SFRs.  

Pros:  cheaper than houses, good yield and cash flow, easy to move out and change purpose of land, rent more affordable for tenants. 

Cons: can be harder to finance, depreciate faster, cheaper materials mean more maintenance. 

Here's how I've mitigated the cons: 

I only buy homes attached to land with permanent foundations. FHA and conventional lenders will finance.

I buy them on land in high growth areas, so while the homes depreciate (all do), the land appreciates. Most of mine have doubled in value over the past 5-6 years.  

I've hardened them with steel roofing and skirting, and better floors.  I also screen tenants carefully. They take better care than average tenants.  

It's a good niche and will continue to be as the demand is huge in some parts of the country.