It seems like when you turn on any reality TV show that has to do with selling a home or remodeling a home, it always goes back to single-family homes, doesn’t it? Can Mobile Homes Be Used As Investment Properties?!
You know the type of show is I’m referring to you.
For sake of not wanting to mention any specific show on this video, it is safe to say that anyone who has ever a channel surfed over the past decade knows these shows.
One thing that I think is always interesting is that I have personally never seen a show explaining the benefits of investing in mobile homes as investment properties as these shows always focus on that a single-family home or sometimes an apartment complex.
Although apartment buildings and single-family home rentals certainly are the tried and true way to put one’s money in if they are looking at purchasing a piece of real estate for investment purposes, I always ask myself why doesn’t someone do a show about investing in mobile homes on leased land as possible rental properties?
My goal today in this brief video is to give you a very, very basic understanding of mobile homes as investment vehicles when used as rental homes.
First, let’s go over the basics so we are all on the same page about what we are talking about here.
As we have discussed several times in the past, mobile homes on leased land are viewed as and taxed as used vehicles in the state of Florida which means that you do not pay property taxes on the home. We have also discussed in the past that most mobile homes in and around the Gulf Coast of Florida are older than 1976 models which means that it is difficult to obtain a mortgage or loan on them as nearly all pre-owned homes of that age are sold and purchased in cash. We have also discussed lot rent, it is the monthly carrying cost most all parks have which covers the usage of land as well as basic utilities, such as water, sewer, trash, and lawn care. Additionally, we have mentioned in the past that most mobile home parks in the area allow rentals so long as they are either seasonal or annual rentals.
We are all aware of the need for affordable housing options as apartment wait lists are continuing to increase. The apartment rents go up accordingly as well. Buying a single-family home right now as an investment property is just plain bananas with how high the real estate market is swelling at the time of this video.
With all that understood, let’s peel back the onion a little bit here.
Most mobile homes only have lot rent as a monthly carrying cost for the owner that they need to pay each month. Most apartments do not offer to-your-door parking or a lot of times even laundry services within the apartment unit for the base price of the rent. As we all know many people are moving to Florida right now looking for more affordable places to live than ever before. Mobile homes on leased land usually don’t carry debt as we have mentioned which brings down the owners’ liability when looking to rent the property.
With all of these things mentioned, do you see all the immediate needs that mobile home rentals meet right out of the shoot?
Mobile homes on leased land are fantastic investment vehicles for those folks who are looking to invest but do not want to take on debt or get into a bidding war with other investors trying to purchase traditional real estate!
Furthermore, the fix & flip investment strategy usually works great with mobile homes. Let’s say you purchase a mobile home for $10,000 and fix it for $5,000. You can sell it for $25,000. A $10,000 quick profit is not a bad idea especially if you are into a fixer-upper business strategy.
Country Lakes Palmetto Florida
Mobile homes are cheap and in Florida, they are not taxed as real estate. People who can’t afford conventional homes always look into buying mobile homes. Not only that they are easier to manage, mobile homes in Sarasota Florida are mostly located inside mobile home parks that are easily accessible. If you are selective during your buying process, your mobile home can appreciate its value and can build your wealth over time.
Any investment that involves real estate has its pros and cons and investing in a mobile home can also be risky if you are not fully prepared and lack knowledge on how to do it properly. The reward can be greater than your expectations if you do it perfectly
Assuming you are looking to purchase a mobile home to live in, there are a number of pros that may make this type of investment appealing.
For starters, mobile homes are generally much cheaper than traditional stick-built homes, so you will likely have a lower mortgage payment and/or be able to pay cash for your home outright.
Additionally, most mobile home parks offer a sense of community that can be appealing, especially for retirees or those looking for a more affordable lifestyle.
Finally, mobile homes tend to appreciate at a rate similar to traditional homes, so you can expect your investment to grow over time..
We look forward to answering any questions you have on mobile home investing and we will be happy to answer additional questions in the coming weeks through our video series on this topic. Feel free to contact us directly with a specific question or drop a comment and a question in the comments below.
The Mobile Home Dealer are licensed mobile home broker in Sarasota Florida and the surrounding areas. We provide professional buy and/or sell assistance to our clients. If you have any questions, please contact us by clicking this link. You may also visit our Facebook Page and send us a message.
This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.
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