Bought a 97 3/2 14x80 mobile home for 6500 dollars. After the move, setup, plumbing, hvac, electrical, etc. I am into this thing for around 12000 dollars. Just got it rented for 650 a month. Lot rent is 290 that I am paying. Tenant pays all utilities.
Should I do more of these? The market here will support many of these deals. I have a park owner that is pretty happy with the idea of me keeping his park full…It’s the only way I can see a 2% purchase price rule in this part.
How much would it cost you to buy a piece of dirt and set it up for a mobile home?
When real estate goes up in price, most of the appreciation is the dirt going up in value and not the building.
I’ve got a couple of really nice pieces of dirt that are going up in value that have mobiles on them (going down in value) that give me a nice little income until the time that I decide to do something else with my dirt.
A mobile on a private lot is easier to rent out than one in a park.
At least do a price comparison to see what the difference is between putting your mobiles into a park and putting your mobiles onto a lot that you own.
Well done JP. They are certainly in demand.
I have been involved with 9 mobile home deals over the past 2 years and they do work well.
I basically buy them and carry the note over X amount of years depending on the sale price of the home. Basically it achieves the same as you, except the purchaser is in charge of all lot fees and maintenance on the home.
If they stop paying, they get kicked out and you start the process again. So you are basically trippling your money over time. Your initial investment is usually paid off within 3 years and then its an infinate return from there on.
Defeinately a good strategy to add as part of your portfolio i think.