Any experience renting manufactured homes

[jdgator]

Anybody have any experience (good / bad) renting out a mobile home?

I already have a few properties I rent out to blue collar and section 8 tenants. I am thinking of buying a half acre property in the county with a 4/2 mobile home on it. The asking price is pretty low because it is a short sale. The property is unoccupied and my previous experience leads me to believe I can get the structure in shape on my own. I think I could be all in for 40k, using cash.

Everyone tells me to run from mobile homes because they lose value. But it seems like as long as I am generating a positive cash and the property pays for itself in a few years I come out ahead.

Thoughts?

 

[jdgator]

I think there is a member on here who owns a trailer park...

 

[ryanh487]

I don't own mobile homes, but I will say from my research/interest in living in one temporarily to build a long term home and then use the MH as a rental property that it's difficult/ more expensive to mortgage a mobile home property. So if part of your investment model is to use existing property as equity to secure funding for more properties, a mobile home will not be as beneficial to growing your portfolio as a traditional home will.

 

[ilbcnu]

A good friend of mine had a park with 40 plus trailers and it was a cash cow. You have to be stern, run credit and background checks to keep the riff raff in check. Maintenance will take up a lot your free time so the more versed in electric, plumbing, hvac you are the better. Basic carpentry and drywall skills required as there is always patch ups to do. He sold his park to a group of investors 2 years ago for 1.3 million..

 

[ilbcnu]

And he bought trailers at auction for peanuts. Moving and set up was a bigger expense at around 6000 per unit. The most he ever paid for nice trailers was around 10.000. Older models can't be titled so be aware of that.

 

[kmckinnie]

It will take 6 years to break even on 40,000 @ 600 per month. Then u have the taxes for 6 years added on.
The younger u are the better off. I started to do the same and said I’m 62. It would be when I’m 70 to get ahead.
Maybe better to fix and sale make 5,000 or more quick. Or so much down and owner financing so they just may take care of it.
I decided where we live better for me to get a new tractor and do food plots for hunters. Lols.

Best of luck.

 

[Buck70]

Mobile homes are easy to work on.

 

[Buck70]

Rents for a 4/2 would be a lot more than $600, probably double. No brainer.

 

[Gator89]

I think there is a member on here who owns a trailer park...

Yep, @chase870

 

[slow motion]

Been thinking of renting one myself. I already own it. Long story. Would need a lot of work to be liveable. Cheaper to move it out and another in but can't move in less than 5 yr. old and now need minimum of 5 acre lot. This sits on 1.1 acre lot. It is in a desirable area, West Forsth Co. but on an easement with other mobiles that are not the best maintained. Small houses here rent for over 2k a month. Think I could get 1k per month rent possibly more. Also thinking of selling it. Interested to see the responses you get.

 

[Worley]

Been doing it for 20+ years, positive cash flow…maybe a few repairs each year…nothing major. I typically repair all plumbing / electrical related items with same material as my house. I did a major indoor remodel last year with flooring and bathroom remodels, took a few weeks in the afternoon but not a big deal.

 

[bassboy1]

If I were a much younger man and had not already found my realestate rental niche, I would be buying these types of stand-alone (not trailer park) rental properties.

$40k ? I'd wager they're giving you the mobile home for free after you put pencil to paper on what land + infrastructure costs are today.


.

Yeah, especially if it's in the county I'm pretty sure he lives in.

 

[kingfish]

Got a good friend and his son who do this. Dad handles the money and son fixes/repairs. They buy HUD and bank owned mobile home properties (non trailer park) pretty cheap and usually pay cash. The son is very skilled at fixing and well connected, so if he can't fix things, he knows someone who can. They do extremely well. Most of their renters come from referrals from local banks and realtors.

 

[Milkman]

@chase870

 

[Boondocks]

Had them ,sold them last year. Covid rules will break you. And they will tear it up.

 

[basstrkr]

I had mobile homes years ago, good return with low investment. has aggravations. But I wanted to add that you need to be sure what county laws may affect you. Their expensive to move nowadays and some places almost want let a single wide in.