Renting out a mobile home

[Joe Carroll]

Hey guys, i want to start investing in real estate and I think my best option is to buy a Mobile home in a trailer park and rent it out. Just wondering what are some things I should know. Thanks

[Aaron Poling]

This can be a great cash flow investment but a few things to check into before moving forward. Does the mobile home park have any restrictions on renting out units? Landlord insurance policies on mobile homes on rented lots can be more difficult to obtain. The tax advantages on rental units on rented lots are different than a typical rental unit. If the mobile home has a propane tank or oil tank for heating, it can be problematic because tenants may not be able to afford to fill up and use other types of heat sources. It is typically better to have the heating unit to be electric because tenants tend to make sure to pay the electric bill because they don't want to lose lights, etc... I have seen mobile home tenants use the stove and dryer for heat when not paying their propane bill, lol. 

Good Luck! Aaron