Renting mobile homes for cash flow

[Wade Joseph]

I'm curious to see what people think about this idea for monthly cash flow. Everyone seems to think owning the land under the mobile home is the only way to go, but what about putting on a lot to avoid all the up front cost? In my area, the numbers below are what I'm looking at.

Cost to buy and move mobile home to park - $10,000

Lot Rent - $125

Rent -$550

Monthly income $425 minus vacancies, repairs, insurance, etc.

Why couldn't a person buy the first one cash, and let it snowball until you had good cash flow to put towards more reliable real estate like homes or apartments? I'm curious to hear some input, thank you.

[Nick Heil]

Most people go for the land because they can push a lot of the risk onto the mobile home owners. Landlords are no longer responsible for the repairs & maintenance, but still collect the lot rent. That's another reason the mobile home parks that are connected to public utilities are a lot more valuable, less risk on the landowner. Private wells and private septics can be a disaster in those deals. Nothing wrong with your idea, though. I think it's certainly possible, but Chris makes a good point. The mobile homes you are purchasing will likely be decreasing in value, but if you can get great consistent cash flow that might not bother you so much.