You normally don't think of mobile homes when you think of investing in real estate, but they can actually be a smart choice. In this article we hope to show you some of the reasons why, and ways you can get into investing in mobile homes.
Why mobile homes?
Even with the economy rebounding, there are still a lot of people who can't afford to get into a large, site-built home. They might be seniors living on a small fixed income, which might have gotten even smaller when their investments shrank. Or they might be people who need to be able to follow their work, and since some mobile home parks allow for RVs to park there as well, they can lead that mobile life.
No matter the reason people choose to live in a park, they're there often for many years. Regardless of how the economy does in a given year, there is always a need to have an affordable place to live. This is one of the big reasons to invest in mobile homes. Market volatility won't affect the residents, because they don't have discretionary income to speak of that they would invest in stocks or mutual funds.
Space rentals are often quite inexpensive, and landlords can keep them that way while still making a good profit, since there is very little upkeep that has to be done on a regular basis. Annual expenses might be as little as 20% of rental income, particularly in desert areas where there won't be much vegetation to maintain.
Current land use laws in many areas favor developers, so there is often very little land that can be turned into a mobile home park, but existing parks do come up for sale. You won't have much in the way of competition from other park landlords, so you won't feel any sort of financial pressure in that regard.
And don't forget - a lot of mobile homes are much less expensive than site-built homes to buy initially, so you can get a lot more for your dollar.
What types of investing are there?
You can be a buyer - financier. This way you buy the home and either sell it to another party, offering competitive financing terms, or you can rent it out and collect the rental income each month. The advantage of the first is that the tenant is fully responsible for upkeep of the home. It's nearly pure profit for you as the landlord.
Vacancies in mobile home parks are often very low, again because people are always looking for affordable places to live. Taxes are also lower than on site-built homes, so you can keep more each month.
You might not think of flipping a mobile home, but this is another investment option available. Just make sure that you do your ทาวน์เฮ้าส์มือสอง ราคาถูก due diligence to make sure there are no surprises when you get into the repairs. You can also sell to other investors or be the financier to investors.
Mobile homes are a unique real estate investment, and they aren't for everyone. You should consult with a real estate agent for advice about the area and about the homes you are looking at to be sure you cover every possibility.
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