Mobile home purchase good bad?

Question

Wanted to see the views on purchasing mobile home to rent out. I have come across some nice ones the are not badly priced. Some are 55+ so not sure if these would be a good idea to invest.

Eliott Elias · Answer

Good for cash flow. Bad resell asset

Rachel H. · Answer

@Justin Seaverns It can definitely work. You just need to research the market and find out the demand. It takes time to do the research, so I wouldn't rush it. I know investors who have done well in all types of mobile home communities and even the 55+ ones. Though, they knew the market and the types of clientele these communities attracted. So having that knowledge worked in their favor. Personally, I've been investing in mobile homes since 2007. It has its ups and downs like any other asset class in real estate. Though overall, it's been quite profitable.

Best of luck with your real estate investing journey!

Theresa Harris · Answer

I agree with Ronnie.  If it comes with land, it can be good. It also depends on what you want to do. I have a mobile home (with additions) on a half acre.  It is older, but in about 5 years, my current plan is to have it moved (happy to give it to someone who will properly disconnect it from the utilities and move it as it is still on wheels) and build my retirement home on the lot.  Essentially the tenant will have paid for the land for me during the 10 years it was a rental-almost $200K at the time of purchase and in today's money well over $300K just for the land.

Ronnie Galindo · Answer

Hey @Justin Seaverns! It all depends. It depends on your goals. If your goal is cashflow to leave a job or just have more money per month, then if the numbers work then that's great. If it is appreciation and wealth building, then I would stay away from Mobile Homes unless you are going for the park like Brandon Turner does, then that would be a solid plan. Mobiles won't appreciate like normal single family. However, it all depends on how creative you would like to get with your investing. I spoke with a guy who bought land with a mobile on it and was renting the mobile while he was getting the plans and everything done to build a multifamily property on the lot. So it all depends really. I hope this helps. if you have any more questions, message me and I will try to help you! Take care and good luck!