By the look of things we might be buying two mobile homes that comes with a house and a piece of land here in Florida.
Mobile homes exist all over the world, but are they a good investment?
1. They are cheaper.
A Mobile Home will in general cost you a lot less than a house. It is also cheaper to repair and needs less upkeep.
2. Mobile Homes depreciate in value.
The value of your Mobile Home will go down as time passes. It’s like a car. A Mobile Home from 1987 will be worth far less than a Mobile Home from 2012.
3. It’s much harder to find good tenants.
If you were to put a mobile home and a house in the same location, the Mobile Home would definitely attract tenants of lesser quality. That said, having a Mobile Home on a really good location can for sure attract really good tenants.
4. Not getting approved.
If you buy a mobile home in a park or on leased land, you will need approval as an owner. A lot of parks won’t let you rent your Mobile Home, some won’t allow any buyers under 55 years of age etc.
5. Mobile Homes have lower standard than houses.
Everything you touch feels cheaper. They tend to smell a bit weird. They are not as well insulated. The ceiling is low. They are just not as pleasant to be in.
6. Last, but not least. Probably MOST actually. The land.
You can buy your mobile home with a piece of land, with a lease on a patch of land or with a rented spot in a community.
If you are buying a Mobile Home in a community or on leased land you will need to make sure to get good renters that helps you pay it off AND cover all the costs for hookups, land rent etc.
If you find a Mobile Home with a piece of land you might be able to rent it and use the income to pay off your investment. Get it right and you can acquire land for free.
Me personally I would only buy a Mobile Home with the land to avoid the risk of being stuck with payments when I’m without renters. The two Mobile Homes in our pipeline are in poor shape so not sure if we will keep them or not as the house on the same lot is enough the make it a good deal. Still, they would help bring more income. What do you think?