Possible mobile home purchase.

[Chris Wilson]

I've been perusing on zillow ran across a mobile home I can afford to pay cash for. However, I dont know much about them. Do you pay for the ot of land if mobile home is payed in full? Would you run comps differently? Can I pull equity out of it? What can and cant I do to the property? What are the pros and cons?

[Rachel H.]

@Chris Wilson If you want to buy the home, you'll probably have to do some market research beforehand. If the home is on land, you'll need to get comps of similar homes in the area that have sold in the past 6 months. If you're only buying the home (not the land), then yes you'll have to pay lot rent to the owner of the land if you intend to keep the home in place. Though, you'll have to go through an application process to make sure the home can stay in place and you can pay monthly lot rent for the land. 

Regarding market research, you may want to talk to local mobile home dealerships, real estate agents who specialize in selling manufactured homes on land, and mobile home park managers. In the past, I've found them to be good sources of information and insight when learning the market. 

Hope that helps!