thoughts on buy & hold mobile/manufactured homes?

[Stephen DeSanctis]

First time poster and first timer investing here....what are your thoughts on buy and holding mobile/manufactured homes? Trying to get my feet wet and stumbled across few of these properties.

Main goal is to establish a portfolio of rental properties that will cash flow (rental income)

Good ideA? Bad idea?

Thanks in advance

[Ryan Murdock]

@Stephen DeSanctis Mobile homes won't appreciate but you can get some great cash flow with a relatively low barrier to entry. You could be up and running with a MH for <$10k out of pocket and no debt on it.  Rent or lease option it out for several hundred per month and you've got a pretty good return on your money. 

Yes, you will have to pay lot rent even if the home is vacant but often times you can work deals with the park owner, assuming your intent is to improve the park and not worsen it. I've seen some park owners give free lot rent if you are fixing up a vacant dilapidated home or maybe even 6-12 months free lot rent if you bring a home in to fill an otherwise vacant lot. 

Don't be afraid to swing for the fences when negotiating lot rent terms but whatever the agreement be sure to stick to it. You stand to gain or lose a ton based on your relationships with park owners. Tenants will come and go but park owners will likely be around for a very long time.