Investing in a mobile home - What you need to know
There is no single sure fire way to invest in a mobile home property. While property opportunities may look similar on the surface, the specifics of repairs, property sizing, repair times, locations and your motivations will vary from an opportunity to opportunity. It is with this spirit in mind that we’re presenting you with solid criteria that outline what you need to know to make your next mobile home investment.
Here’s what an ideal mobile home investment needs to look like:
When seeking a solid investment mobile home, one of the first consideration should be the size of the home. Understand that a double wide mobile home is often more desirable than a single wide unit and a double wide with several bedrooms is a great investment that is guaranteed to provide big returns. But, when looking at a new mobile it is also important to look at the age of the mobile home because many financial lenders such as banks won’t provide financing for mobile home units that are 10, 15, or 20+ years old.
Condition and price of the home
One of the greatest drawbacks that need to be considered for a mobile home investment is the condition of the home. So, the condition of the home needs to be factored into any purchase decision, remember that just like a standard foundation home that typically the better the mobile home condition is the more expensive the home is. Most buyers want to move into the home quickly, so any new investment mobile home needs to be move-in ready and stay in a clean state if the time comes for resell. Used mobile homes often require minor or major repairs, if you’re just starting a journey into mobile home investment it might be wise to consider mobile home investments that only require $3000 in repairs and pass on investments that might require a higher repair budget amount.
Location, Location, Location
Look at the location of the home because expect to pay a higher price for a unit on private land which will significantly lower the property value, so understand the capital you have to work with and plan accordingly. When moving into the purchase phase of the investment, focus your efforts on sellers within pre-existing communities or private land because they are often seller very motivated to sell.
These are some of the most important criteria that need to be discovered during the investment process into purchasing a mobile home investment unit. But, they aren’t the only criteria that are worth considering. If you’re seeking to rent out the property while keeping it in your investment portfolio, you’ll need to look into property investment rules in your area. So during your homework before moving into the investment state could net you the mobile home property of your dreams.