Anyone invest in Mobile Homes?

Question

Teddy Smith · Answer

My first investment was a mobile home:

- The electricity/gas bill isn't true because they tend to be very small

- Never finance them

- Make sure you are buying the land underneath it also

- Be prepared because mobile homes are in that "affordable housing" category and attract bad tenants

-They break and people are reluctant to fix them

- Make sure you are getting a good deal and a massive return (otherwise don't bother)

Overall, I wish I had bought a single family, but I got a good deal and it has a huge unlevered return

Rachel H. · Answer

Regarding taxes on a mobile home, it depends. If the home is on someone else's land (other than the owner), than the home is considered personal property (like a car) and the taxes are usually lower than if they were attached to a piece of land owned by the owner.

Though, if the home is attached to the owner's land the home is considered real property and it will be higher in most cases than if it were personal property.

Yes, if the home is on someone else's land they are most likely paying a rental fee called lot rent in order to have the home sit on that piece of land.

Regarding utility bills, it really depends on the people living there, how much they use and the size of the home.

Hope that helps. Good luck!

Thomas S. · Answer

Taxes will depend on your state regulations. In my area owners pay taxes on the home only if it is in a park. If the home is on it's own land it is taxed as a regular home.

If they are in a community (park) they will pay lot fees as well as water depending on the community.

Older homes will have high heating costs, newer ones are well built and are  comparable to a stick built homes.

If it's a older home in a park you will not make any money renting it after lot fees and high maintenance costs.

I have bought several to flip but personally would never hold to rent.

Shawn Ackerman · Answer

@Ned Micic Nope, but will definitely follow this post.  Always been an interest of mine.