Rental Property Investor · Leesburg, GA · Member since 2019 · 20 posts · 3 votes
I just agreed to a deal with a older fellow who has the title to his singlewide mobile home. He pays $155 a month lot rent. After analysis I can make around $350 a month cash flow on it but I'm worried because he doesnt own the lot. I'm new to real estate so i dont know all the details on buying homes on lots. It seems like most people on here are buying the whole trailer park, lol. But is this a smart deal or. Is there something that I'm over looking?should I just flip it so I dont have to deal with the lot rent?
Hello Josh. There is nothing wrong with not owing the lot, many don't. Of course it would always give you more protection and control if you owned both but that won't always be the case. Simply go to the lot owner and ask about the details yourself. How much is the lot rent? What in included? Extra fees? Length of contract? How much heads up does he have to give you if he sells the property? Once you are happy with all of that then move forward with the deal. Hope that helps!
@Jon Schoeller thanks man that helps alot. I wasnt even sure where to start after I tried to contact him. Now the trick is to find out who it is. The building owner didn't know. I'll just have to dig some.