Investing in a Mobile Home for the income from it is a good idea, just like owning a house, or apartments, or a commercial property. However, with Mobile Homes comes a different set of rules. Here is some things to know:
First, most Mobile Homes are located in communities or parks. 90% of the time the rules for living in the parks are that you must own the Mobile Home yourself. Occasionally you may rent one out to a family member, but this is not usual or a good investment. Be sure to check with the park manager first before buying a Mobile or Manfuctured Home as an investment.
Second, the property laws are different for Mobile Homes because they are personal property, not Real property. Make sure that you check out the local and State laws governing renting personal property. One area is the condition of the home – you are liable for the home being up to code and in VERY good condition. This may cause the numbers not to work in your favor. Proceed with caution.
Third, Mobile Homes are cheaper, normally, than other properties, and thus can be a great investment. If you are very careful with the first two issues above, then you will certainly make good money simply because your costs will be lower for the initial investment.
Again, do your home work and don’t assume the Real Property laws will apply to Mobile Homes, but if you are cautious, you will stay out of trouble.
Now, you could also invest in a Mobile Home Park. This is comes with a whole set of different benefits and problems. Mainly though, the park owner only worries about the upkeep of the park, and tenants that don’t pay. Gone are the toilet clogs and roof leaks. Typically buying an established park is the best idea rather than trying to build a new one. Upgrades to make an existing park better normally are simple, compared to starting a new park.
Financing should be easier as well on buying a Mobile Home Park. A lender will qualify the park’s existing income and expenses for the loan, much more than the new owner’s personal balance sheet. Although this is important, it is always recommended to have experience in management before buying an existing Mobile Home park.
Check out more information, tips, advice, and recommendations about mobile homes and manufactured homes at: www.free-mobile-home-info.com