Thinking about buying a mobile home

[Patrick Crehan]

I am really considering purchasing a mobile home if the ROI is what I want it to be although I have only purchased and maintained and rented single families in the past. This would be new territory for me.

Question: will parks let you buy and rent a mobile home on their land?

What is rent like for a mobile home in Cincinnati, OH?

What are some features of a mobile home and community that makes it different from a typical neighborhood?

What are some pros and cons of owning and renting a mobile home?

I am in the Cincinnati area. Also, if anyone is thinking about teaming up for an investment, possibly a multiplex, dm me. Thanks guys!

[Rachel H.]

@Patrick Crehan Regarding your question about parks, it will depend on the park whether or not you can buy and rent a mobile home out on their land. Some parks allow this while others do not. As for the rent for a mobile home, it will depend on your area. Usually, the rents you can get are comparable to an apartment unit based on the number of bedrooms and bathrooms around the park. Of course this will depend on the clientele and what renters are willing to pay for in the area. 

About your question about neighborhoods, just like single-family homes there are different types of neighborhoods when it comes to mobile homes. I classify them as low-end, middle-of-the-road and high end parks. Usually, you can get a feel for these types of neighborhoods just by driving them. Look at how the yards are kept, the types of cars in the community and the types of people who live there. 

As for pros and cons of owning and renting a mobile home, this will depend on the home and the types of clientele you choose to work with. A mobile home can be a great investment if you get the right tenants and the home is properly maintained and well taken care of just like any other real estate investment. 

One of the advantages of buying mobile homes is that you can get into them for less money out of your pocket than other real estate asset classes. If you can buy using all cash and find good deals, they can be very lucrative investments. Also, the taxes and insurance may be lower on mobile homes depending on your area and the market where the home sits. 

Regarding cons of owning and renting mobile homes, there are some parts of a mobile home that are specialized. This will require you to purchase these parts at a mobile home store whether it be local or online. Also, you will need to find and work with contractors who work specifically on mobile homes should you need help with fix-up work in the future. Many times, these types of contractors are scarce. Though you can easily find them through your local mobile home supply store or by talking to other parks in the area. 

One thing I like about mobile homes is that you can do small deals and get in and out of a deal fairly quickly (as compared to bigger deals like apartment building). If you do one deal, then you can decide whether or not you want to pursue more mobile home deals. Unfortunately, this is not always the case when you do bigger deals as you have more money invested in them and they may take longer to close. 

Hope that helps!