Can you buy one mobile home and rent it out?

Question

I listened to a BP podcast on here about mobile home park investing recently and it sparked my interest a little. I have never really considered it before but as I have researched the idea a little more there seems to be quite a few pros. I particularly love the advantage of the low entry points and potential for creative/seller financing for a potentially decent cash flow investment.

I am not in a position to be able to buy an actual mobile home park but I am interested in the idea of buying a single mobile home and renting it out (similar to a long term buy and hold strategy with regular real estate) Most of the information I can find online talks about owning the actual parks or buying a mobile home and then turning around and flipping it but not much about buying one and renting it out.

I was hoping to get some input from other investors involved in mobile home park investing. Is it possible (or does it even make financial sense) to buy a mobile home either on private land or within a mobile home park and rent it out to tenants long term?

I am new to all this so any insight would be very much appreciated.

Thanks for your time.

David

Rich Ferradino · Answer

Yes this is a strategy used, but I would do it on your own private land for long term buy and hold. That way you get to take advantage of the appreciation of land if you are in a market that is growing and your land is in the path of growth.

One advantage I've seen in some parks is that they will do the property management for you, not including fixing the home, but tenant selection.

Thomas S. · Answer

Keep in mind after lot rent plus other fees the margined on renting mobile homes in a park is minimal. Park owners have found it is a wash and all they really make in profit is off of the lot rent due to high maintenance and tenant costs.

Consider your tenant pool. There are good and bad tenants but generally those that can not afford to own a mobile home and have to rent will be the bottom of the overall tenant pool. Damage may be high, property neglect will place you in conflict with the community owners and tenant turn over/evictions a common occurrence.

Not really worth the trouble in my opinion in a park assuming you can even find one that will allow it..

Account Closed · Answer

@David Rutledge Yes, you can do mobiles, but . . .

Decide which kind of investor you want to be (SFR, Commercial, Land, Tax Liens, HML, Multi-Family, Notes, Fix & Flip, Buy & Hold, “Subject To”, apartments, duplexes, assisted living, REOs, Foreclosures, Short Sales), etc.. Decide how much money you have access to, &the zip codes, city or state you want to focus on. That will determine the next step. Outline where you want to be in five years. Put it all in writing. Start working your plan.

If you have further interest send me a Colleague notice and I can email you some info.

Account Closed · Answer

The best way to do this is the RTO approach with a large option payment up front. If they go through the RTO process you have made a bundle and if the default you basically get back a free home.

Steve Racicot · Answer

Yes you can purchase mobile homes to rent out but make sure you review the rules first to make sure that it is allowed. In New Hampshire, where i live, most mobile home parks do mot allow renting. The owner has to live there.

Raul Flores · Answer

Yes, you can put to rent a mobile home @David Rutledge

In my case I am appreciating the idea to rent a mobile home if the park permit it or a mobile home with land.

To find the deal I am planning to buy the list from List source site and then send post cards, lets see what happen.

Can you buy one mobile home and rent it out?

Can you buy one mobile home and rent it out?

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