Is it possible to purchase the lot a mobile home sits on without purchasing the home? In other words, become a landlord by owning the dirt and collecting lot rents from the homeowner? Anyone else do this? Are there any negatives to this approach (I don’t see any)?
GPRE,
I have done this a few times and never really had any problems with it. Just make sure you will be able to charge enough rent to cover your expence and you should do well.
Rich,
Thanks for the reply. In this scenario, who pays the property taxes and insurance?
Also, what are typical interest rates for mobile homes & lots? I’ve read some examples of 12-15% rates, but these are double the rate for a normal stick built house.
GPRE,
If you only own the lot, you will only have to pay the tax on the land. If you own the MH then you will need to pay the taxes on it also.
The typical interest rates I have found most often on MHs has been around 7% and the lots have always given me better rates of around 5%.