Thinking about buying a Mobile home

[Todd Schmitz]

I have been a member of BiggerPockets for about 8 months now or so. Never posted anything before this as I was just reading the articles, blogs, and listening to the podcast. Closed on my fifth condo on 12/16 in Aurora, CO. Love learning new things from here almost daily. Closed on three condos in 2016 in the Denver market. I have some capital and would like to invest in properties but everything is over priced in our market now. Looking at buying a mobile home in ND as I have connections there. What are the biggest things to watch out for? What are the most common fees? Lot rent? Hoa fees? Taxes? Current deal I am looking at is for a 3 bd 2 bath for under $30k. Built in 1975. Thanks for your help.

[Rachel H.]

@Todd Schmitz Usually, the higher lot fees will dictate the area and the community. If there's a lot of demand, the parks have higher lot rents for the most part. Also, if there have been upgrades to the park and/or improvements usually the lot rents go up. 

Unfortunately, there are cases where the lot rents go up yet the park has not done anything to justify the raise. And there are still issues (i.e. unpaved roads, plumbing issues, etc). This type of behavior really upsets residents. 

Regarding the lot rent fee, you probably need to research the other parks in your area to see what they're charging. Visit different types of parks and see what you prefer. Different parks attract certain clientele. You just need to know what types of parks you like and the types of clientele you feel comfortable working with. 

About maintenance, it will depend on the type of people you put in the home. Screening and sizing people up comes with experience. There are people who really take the time to take care of the places they live in...even if they are renting. On the other hand, there are folks who don't...which can be a nightmare when you take back homes. Just be very careful with your decision making when it comes to choosing people for your homes. 

Hope this helps. Good luck!