Mobile Home Park InvestingAs you are considering different types of investments, don't rule out mobile home park investing. Mobile Homes are popular items because of their affordability, mobility, and the fact that now-a-days mobile homes have some great amenities like houses do. In fact it's not uncommon to find mobile homes that have jetted tubs in the master bath! I will say for the record that I have never owned a mobile home or a mobile home park, but every year (in fact every few months)for the past couple of years I find myself looking at them. I find mobile homes very intriguing. Mobile home dealers and manufacturers are doing great business. As with any other type of investment, mobile home park investing has its pros and cons.
Let's begin with a look at the different types of mobile home investing you can do. First, there are those who own the mobile homes. Mobile homes by themselves are not considered real estate. It is considered personal property. The reason it is considered personal property, like a car or boat, is because it can be picked up and moved. You can buy a mobile home and rent it out just like you would a house. If you own land you can sit the mobile home on the land. If you don't own a spot to sit the mobile home then you will have to rent a spot at a mobile home park. Typically, you will pay about $150-$250 for a spot. This will include some basic utilities such as water, sewer, and trash but not electricity. You can probably rent a 2-3 bed mobile for around $350-$550 depending on how nice it is. I called around my area and this seems to be about average. So if you are paying $150 for a pad and renting the home out for $450 this leaves you with about $300 profit. In a lot of cases mobile home parks will not allow someone who doesn't live in the mobile home to rent a pad. The reason is because they feel like people who own the mobile homes themselves will be better residents. Whether this is true or not I have found that most of the decent parks in my area feel this way. However, I have found exceptions.
As I stated earlier, most pads rent out for about $150- $250. Here is the beauty of owning the park- YOU DON'T HAVE TO REPAIR TOILETS, REPLACE CARPET, ETC!!!! Your only concern is making sure the utility hook-ups are working, the park it clean and mowed, and that the residents are being quiet and civil. Since they own the mobile home it is their responsibility to take care of it. You just focus on the park itself. A lot of money can be made in owning mobile home parks.
A lot of times people will buy some land that has a mobile home on it and want to get it removed. You can typically get a bargain from these people since their main concern is just getting it moved. Since there are opportunities to pick them up so cheaply, there is a lot of potential to make a nice profit in rehabbing them.
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