Pros/Cons of Mobile Home Investing

[Abby Haralson]

Hi BP investors! Would love your thoughts on renting out a mobile home-the cash flow analysis looks great based on current rental markets but I know mobile homes come with some cons. Anyone have advice for someone just starting out and considering a mobile home? Thanks in advance! 

[Cory J Thornton]

@Abby Haralson - My mobile home investing experience is not extensive, but I will share a few things that I have learned to consider when purchasing a mobile home. 

- A single wide trailer needs to return your money exponentially faster than a stick built home. When you buy a single wide, you are using cash. You can't use debt to get your cash back out of the home, so the property will need to throw off enough cashflow so you get all your initial capital back in the first few years. 

- This may be different in every state. Mobile homes come with a title, like a car. When dealing with a mobile home, I always ask about the title. Sometimes they have it and can send me a copy and other times they have turned the title into the state, as part of the process of making the home real property. 

- Double wide trailers, on a property foundation, made permanent, with several other boxes checked, are usually as saleable as a stick built house. On a property installed double wide people can still get an FHA and potentially a VA loan. Not that you are buying the property to sell it ... but I like to know my selling options, before I buy.

Best of luck on your investing journey! Keep us all posted if you end up the proud owner of a mobile home rental! 

[Rachel H.]

@Abby Haralson Most definitely! What I've learned from my experience in the mobile home investing business (since 2007) is that the neighborhood will depend on the type of clientele it attracts which are the types of residents you'll be working with. 

Those who have negative things to say about mobile homes as an asset class in real estate usually cite more lower-end communities versus higher-end ones. Personally, I've worked all different types of communities in the mobile home industry from low-end to middle-of-the-road to high-end parks. 

In the end, I've learned to work in communities that work with my personality which attract a certain type of clientele depending on the neighborhood. So, my best piece of advice would be to only work in areas and neighborhoods that work with your personality and attract the type of clientele you're willing to work with. 

If you're still researching areas to buy, you may want to visit different types of mobile home communities (i.e. low end, middle-of-the-road, high end, etc) and compare them. Figure out which types of areas you feel comfortable in and hone in on those areas. 

Feel free to DM with any questions. Hope that helps! 

[Tianya Jackson]

Quote from @Cory J Thornton:

@Abby Haralson - My mobile home investing experience is not extensive, but I will share a few things that I have learned to consider when purchasing a mobile home. 

- A single wide trailer needs to return your money exponentially faster than a stick built home. When you buy a single wide, you are using cash. You can't use debt to get your cash back out of the home, so the property will need to throw off enough cashflow so you get all your initial capital back in the first few years. 

- This may be different in every state. Mobile homes come with a title, like a car. When dealing with a mobile home, I always ask about the title. Sometimes they have it and can send me a copy and other times they have turned the title into the state, as part of the process of making the home real property. 

- Double wide trailers, on a property foundation, made permanent, with several other boxes checked, are usually as saleable as a stick built house. On a property installed double wide people can still get an FHA and potentially a VA loan. Not that you are buying the property to sell it ... but I like to know my selling options, before I buy.

Best of luck on your investing journey! Keep us all posted if you end up the proud owner of a mobile home rental! 

 Do you invest in homes that are already in mobile home parks or do you find MH, move them, fix them and sell or rent?  I am looking into purchasing, fixing and rent out. I currently have 2 lots that I would like to do this on. Thanks in advance

[Cory J Thornton]

Quote from @Tianya Jackson:

Quote from @Cory J Thornton:

@Abby Haralson - My mobile home investing experience is not extensive, but I will share a few things that I have learned to consider when purchasing a mobile home. 

- A single wide trailer needs to return your money exponentially faster than a stick built home. When you buy a single wide, you are using cash. You can't use debt to get your cash back out of the home, so the property will need to throw off enough cashflow so you get all your initial capital back in the first few years. 

- This may be different in every state. Mobile homes come with a title, like a car. When dealing with a mobile home, I always ask about the title. Sometimes they have it and can send me a copy and other times they have turned the title into the state, as part of the process of making the home real property. 

- Double wide trailers, on a property foundation, made permanent, with several other boxes checked, are usually as saleable as a stick built house. On a property installed double wide people can still get an FHA and potentially a VA loan. Not that you are buying the property to sell it ... but I like to know my selling options, before I buy.

Best of luck on your investing journey! Keep us all posted if you end up the proud owner of a mobile home rental! 

 Do you invest in homes that are already in mobile home parks or do you find MH, move them, fix them and sell or rent?  I am looking into purchasing, fixing and rent out. I currently have 2 lots that I would like to do this on. Thanks in advance

 @Tianya Jackson - If I am making the investment, then I want to be sure I own the land and the home whether it is in a park or a one off type lot. I currently only have one single wide and it was already on the lot when I purchased it. As long as I knew my cost and knew I had zoning approval on the front end then I would not be opposed to putting refurbished trailers or possible new units on new lots. I have a friend / client that has done very well with this approach. You can often find someone needed a trailer removed from their property and get the home for a very reasonable number. Facebook Marketplace is where you can usually find people selling their trailer or needing it moved. This method of investing is low or no appreciation (usually) but the cashflow typically beats most other rental options. 

Best of luck on your learning and investing journey!