brrr with mobile homes in portfolio

[Brock Hall]

Hey has anyone acquired a portfolio that includes mobile homes. There is an opportunity to purchase a portfolio of 6 total properties 3 units on one parcel and 3 on another parcel all on the same piece of land, however 3 of the units seem to be mobile homes. They are all rented and it looks like there could be a decent cashflow from this acquisition however my concern is that when I would try to refinance out to get my cash back, that the appraisal could be lower based on the mobile homes, has anyone faced anything like this before....I know this sounds a bit crazy so any info would be most greatly appreciated and if there is any additional info you need from please let me know thanks

[Miriam Seidel]

It all depends... if the mobile homes are on permanent foundation.

If they are not currently on permanent foundation, but can convert to such, then they become real property, and can get appraised as such.

And, then of course, be prepared to pay more in property taxes as well.

Instead of paying property taxes only on the land, appraisal will be much more including the homes, once they become real property.