Anyone doing Mobile Homes

By mixing and matching, you can have some houses getting paid for (and building equity for the future), and use the mobiles for cashflow. --12.168.126.9

RE: Anyone doing Mobile Homes (by rise2it[VA])
Posted on: Mar 23, 2005 3:32 AM
Message:

...And the way I worded that first sentence, it's obvious I'm from the south... --12.168.126.9

RE: Anyone doing Mobile Homes (by gevans[SC])
Posted on: Mar 23, 2005 4:22 AM
Message:

I do MHs for that very reason. I have a friend with over 100 MHs, all singlewides, and all older than 10 years. He doesn't own a single piece of land other than his house. His monthly cash flow from rents is over $15k. MHs are very high maintenance, and the renters typically need a tighter leash, but cash flow is excellent.

I'm just getting started, nothing of that caliber. I have 4 singles and one double, plus one rental SFH. Soon to buy a second SFH. --141.129.1.98

RE: Anyone doing Mobile Homes (by shan[fl])
Posted on: Mar 23, 2005 4:24 AM
Message:

Very seriously thought of it about a year ago as there was a three year old foreclosure that was so inexpensive I could barely resist...or so I thought. It was a double-wide with all the bells and whistles [jacuzzi tub, fireplace, lots more...surprising they have all that] and was priced at 19k including the land. I could have rented it for at least 600 a month just given the size of the place BUT after checking on insurance [2k per year], taxes [1200 a year], etc the cash flow began to look that much more minimal. The kicker for me was that my banker--a local bank where I deal with one of the owners pretty frequently and value his judgement--said they are frequently difficult to get rid of because the prospective buyers are marginal at best and it can be tough to get one that is really capable of securing the financing. The land would be the only real reason to buy as it's a mobile home and therefore loosing much of it's value just like a vehicle. Another investor bought it and the last I took a look he had dropped the price several times and it's still for sale. --24.136.62.250

RE: Anyone doing Mobile Homes (by rise2it[VA])
Posted on: Mar 23, 2005 4:38 AM
Message:

Valid points, but the goal is NOT to resale.

$600 a month rent off a $19,000 investment.

Ten or fifteen years of that kind of cashflow, would you really care what it's worth then?

Another way to look at it - With a couple of these, you could make your OWN house payment, essentially getting your own home for free. --12.168.126.9

RE: Anyone doing Mobile Homes (by rise2it[VA])
Posted on: Mar 23, 2005 4:42 AM
Message:

Shari had another good point - being in Florida , he/she may face increased insurance on mobile homes that other parts of the country wouldn't.

I would assume though, that insurance on 'real' homes is also quite expensive in Florida, and eats into the cashflow quite a bit. --12.168.126.9

RE: Anyone doing Mobile Homes (by T&J[TX])
Posted on: Mar 23, 2005 4:56 AM
Message:

We got started with MHs because it was cheaper to get into and the cash flow was good. We also have all old MHs. We are able to live off the cash flow and are now branching into equity building type properties. Maintenance and management are a bit more intense. If you are not interested in doing constant minor maintenance--the MHs will soon be a disaster.

We are also in the south where MHs are an accepted part of life. --208.187.73.97

RE: Anyone doing Mobile Homes (by Pattyk[MO])
Posted on: Mar 23, 2005 5:10 AM
Message:

I have both stick homes and mobile homes.

Right now the mobile home is rented for $25 more a month than the house! Go figure! Where we live they rent for about the same price if they have simular options.

My mobiles are on private property , not in a mobile home park. That makes a HUGE difference. --64.240.149.30

RE: Anyone doing Mobile Homes (by RRR[TN])
Posted on: Mar 23, 2005 5:33 AM
Message:

My angle on these is that I am negotiating for a small MH park (6 units). I would own only the land and utilities (city water and septic systems).

Arguments against:

1. Low income - $200/mo each.

2. No depreciation.

Arguments for:

1. Zero maintenance and almost zero calls from tenants.

2. Great stability. Nobody moves their older MH off the space to seek another space. Cost to do this is $4-6,000 and value of MH is usually <$10k.>

3. Land value escalates while renters pay all costs.

4. Nice balance to holdings - stable cash flow.

Again, I am in the south where MH's are a fact of life. --66.191.224.119

RE: Anyone doing Mobile Homes (by Mike[TN])
Posted on: Mar 23, 2005 5:36 AM
Message:

I like MH parks better than owning the homes. They tear up all the time and you are rarely able to get suitable financing for the homes, unless they are double-wides on a permanent foundation. There are a lot of good deals on those around here and the cash flow is very good. --67.63.172.210

RE: Anyone doing Mobile Homes (by RRR[TN])
Posted on: Mar 23, 2005 5:39 AM
Message:

Mike:/TN - Would you contact me via e-mail?

"rryalls@charter.net" --66.191.224.119

RE: Anyone doing Mobile Homes (by shan[fl])
Posted on: Mar 23, 2005 5:41 AM
Message:

Don't know how you are calculating cash flow of $600 on 19k...that would be 600 minus nearly 200 a month for insurance another hundred for taxes, then add in vacancies, repairs, loan [if any...I was going to pay cash] plus PMI if any, etc...it's more like 200-300 at the VERY best which isn't bad but it's what i expect from an APPRECIATING asset like a sfh not a completely depreciating asset like a mobile or vehicle. As for insurance...that 2k plus for a 19k mobile compares to $350 annually for a 100k sfh...the difference is HUGE and that is if you can find someone to insure you. The rates only go up and by adding a mobile there was a large chance my current provider would drop me...I didn't even calculate in the increase on my other rentals resulting from buying a mobile in general. At least in Florida they don't make any sense. Besides, the houses are going up FAST...mobiles, who wants a 30 year old mobile? They have to cash flow incredible amounts because the appreciation is only in the land --24.136.62.250

RE: Anyone doing Mobile Homes (by RRR[TN])
Posted on: Mar 23, 2005 5:53 AM
Message:

I also have an old (1979) MH on an acre in FL (Williston). Real world experience is this: I bought it 2 1/2 years ago and have it on a lease with a local broker. Paid $27k and lease for $400/mo (minus $40 for broker to manage). Insurance is $575/yr and taxes are $240/yr. I have incurred no other expenses.

The value is presently $40k+, due almost exclusively to land. The key, as always, is SCREENING and management. Just FYI. --66.191.224.119

RE: Anyone doing Mobile Homes (by Dave[OH])
Posted on: Mar 23, 2005 7:16 AM
Message:

I know people who do this successfully, but it is work. I prefer my holdings to not blow away in high winds. I must admit I don't understand why people live in mobile homes. They could get a house. NW Ohio may not have as much of a need as say, FL. --63.162.24.193

RE: Anyone doing Mobile Homes (by Gloria[Tn])
Posted on: Mar 23, 2005 8:06 AM
Message:

4 of mine are mobile homes on at least 1 1/2 acre and my insurance is only 450-650 a year each so cash flow is wonderful. --24.159.54.174

RE: Anyone doing Mobile Homes (by Terence[MD])
Posted on: Mar 23, 2005 8:07 AM
Message:

Mobile Homes are rough business. I manage a portfolio of approx $25.0mm in mobile home loans for the bank I work for. When they go bad they go very bad. Resale value is horrible, we are getting roughly 25-35 cents on the dollar. That being said it obviously is an opportunity for somebody to purchase cheap, and establish rental income. I dislike homes in parks, because you will always have lot rent. The caliber of people is generally lower, and if a mobile gets trashed, it can be basically worthless when you finally get it back. But if you can purchase for cash you may do well. --151.196.161.4

RE: Anyone doing Mobile Homes (by CAW[OR])
Posted on: Mar 23, 2005 8:46 AM
Message:

Between myself and my son, we have several. Actually, I have 2 that are really mobile homes and the rest are manufactured homes.

I can tell you that it is so localized that literally 3 miles makes a difference in how they rent.

The tenants do not care how old the mobile is, they only care what the condition is and the location and what the neighborhood is like.

The top condition attractive Manufactureds in an excellent location in the center of town (large private lots, old growth trees, 1 block from the river park) bring $100 a month less than a stick built. The tenants, when finally obtained, are the tops and they stay put. But these are tough to rent. A whole fleet of scum will come through with their noses in the air announcing that they are much too good to live in a mobile home.

The ones out in the country (in nice areas)with acreage and room for livestock bring tip top premium rent and over-qualified tenants are fighting over them. Not one looker has ever thought they were too good for the MH. They think the home is lovely and comfortable and they love the views and they they are delighted to get such a nice place out in the country.

I have two old mobiles (metal, flat roofs, thin walls) and they have a lot of applicants because the rent is low and they are in good condition and nice areas. The aplicants are scary. But I manage to sort through the dopers and the liars and get good tenants. These bring about $250 less than I would get if I put a stick built of the same size on that lot. --216.228.164.129

RE: Anyone doing Mobile Homes (by RR[TN])
Posted on: Mar 23, 2005 10:07 AM
Message:

Just an observation - Look over the comments from the Northern states versus those from the Southern states. There is also a rural/urban slant to the comments. This is not a negative comment, just an observation.

Another thing - Yes, I'll say it - I don't care for the stereotyping of residents of MH's. There are plenty of undesirables that rent our houses and apartments too. --66.191.224.119

RE: Anyone doing Mobile Homes (by D.Vest[PA])
Posted on: Mar 23, 2005 12:35 PM
Message:

I own a small MH park consisting of 5 MH's and only 2 of them I own. The MH's we have on the property range from 1968 to 1978 (approx.). That, to me, is an eyesore. I also experienced people abandoning their MH's for whatever reasons, leaving us with a home that cannot be moved because of the condition. With one abandoned unit, we gutted it and redid the entire place ( ALWAYS CHANGE THE PARTICLE BOARD CRAPPY FLOOR WITH PLYWOOD!!). We rent that for $575.00. We also own a 1968 one in excellent condition and rent it for $475.00. The 3 others are land only and we raised the rent pretty high ($275) with the hopes of them moving. It has been 2 years and they are all still here! The maintenance is tedious(?), I have to say. We have experienced all sorts of strange things.

On a good note though, they pay for the mortgage, maintenance,taxes and insurance without us having to pay any out-of-pocket expenses. When they are all up and running, we even have enough to cover our own mortgage!

Dionne` --216.193.146.224

RE: Anyone doing Mobile Homes (by Lynda[TX])
Posted on: Mar 23, 2005 1:17 PM
Message:

I am convinced the best WAY to get income from mobile homes if the Lonnnie Scruggs way from his book "Deals on Wheels." If you buy the MH in a park, you sell the MH to a new buyer on an installment plan of 3-5 years. The buyer pays you for the unit and pays the park for the land rent. Within a few years the buyer owns the MH and only has to pay the park rent. Also the BUYER pays all the maintenance. You just collect your income stream till it amortizes. You pay no taxes and no insurance. I WANT very much to do this but my research found prohibitive laws in TX. I will have to have a training session with T&J(TX) to find out how they are doing this! --140.140.58.8

RE: Anyone doing Mobile Homes (by RRR[TN])
Posted on: Mar 23, 2005 1:18 PM
Message:

So is that an indictment or do I read platitudes? Where do you stand? --66.191.224.119

RE: Anyone doing Mobile Homes (by Mike[TN])
Posted on: Mar 23, 2005 1:25 PM
Message:

I figured out that, in TN at least, you have to be licensed as a MH dealer to do Lonnie deals. You apparently have to go through a bunch of irrelevant training about setting up the homes, tie downs, etc. --67.63.172.210

RE: Anyone doing Mobile Homes (by Birdman[TX])
Posted on: Mar 26, 2005 2:28 PM
Message:

I'm doing very well by renting out mobile homes. This summer I bought 2 single wide repos (a 97 and a 98 model). I got the 97 for $6000 and the 98 for $6500. Both homes are 16 x 80. I had the 97 set up in a park and bought the 1 acre lot the 98 was on for $18000. The 97 brings in $575 a month snd the 98 gets $650 a month (because of the acreage). Both homes are 3 bed/2 bath with separate showers and garden tubs. The 98 has a rock fireplace. I put $4000 worth of repairs into them combined (new flooring, decks, etc.). Insurance runs $180 a year for each home and taxes around $400 a year. I spent a total of around $36,000 and get a monthly cashflow of $1225 minus 100-150 for taxes, insurance, and repairs. Still have positive cashflow of over $1000 a month. IN three years they have paid for themselves and are earning me over $12,000 a year EVERY YEAR. They may depreciate, but I own the 1 acre lot, so when I decide to sell the '98 I'll just rent out the lot forever. --67.11.218.70

RE: Anyone doing Mobile Homes (by Dennis[MN])
Posted on: Mar 26, 2005 5:19 PM
Message:

I have 15 MH's and the only thing that has never happened to me is water in the basement. Those that I own I sell on a "rent to own" contract. They give a down payment and pay 8% interest and all the rent rules apply till it's paid for. They are responsible for repairs and maintenance. Works well if you screen carefully! --24.179.202.124

RE: Anyone doing Mobile Homes (by Lizard[ga])
Posted on: Mar 26, 2005 6:32 PM
Message:

Ummm...I don't know much about this...what's the difference between a manufactured home and a mobile home? --68.158.2.239

RE: Anyone doing Mobile Homes (by Dennis[MN])
Posted on: Mar 27, 2005 8:26 PM
Message:

Lizard- A manufactured home goes on a foundation or basement. The hot water heater and furnace are in the basement. A mobile home has wheels under it and a frame. The hot water heater and furnace are on the main floor. --24.179.202.124

RE: Anyone doing Mobile Homes (by myles[tx])
Posted on: Jun 3, 2005 12:36 PM
Message:

I LOVE MOBILE HOMES!! i want to sell all my sfh now because i want to buy lands with mobile homes in it. in Texas houses does not appreciate as much as northern states anyway, so mobile home is the way to go! i do lonnie deals to, but after the amortization, your golden goose is gone, so now i'm going to rent them out.

hey Mr. Birdman, can you tell me which insurance company you use? and the phone number. i'm paying a lot more than that. thanks. --170.97.67.115