Mobile homes attached to private land will likely be considered one of two types: real property or personal property. When the original owner of the mobile home moved the home onto the land, he or she legally joined the two pieces of property mobile home and land together as one legal description.
In many states the title is then surrendered to the state. Yearly property taxes will change depending on your state. If a mobile home on top of private land you own is considered personal property, it will likely have a title similar to a vehicle. The mobile home and the land will be taxed separately in many states.
The mobile home was never legally married joined to the land. This process starts by contacting your local tax collector and property appraiser.
If a mobile home is legally joined to a parcel of land, it may be unmarried and separated. This is how people may upgrade their manufactured homes from year to year while keeping their same plot of land. This process of legally separating a mobile home from a parcel of land begins at your local tax collector and property appraiser departments. Legally separating the mobile home and land does not mean physically separating the two — the mobile home will remain on the current plot of land.
If the mobile home is legally separated from the land, then the mobile home very likely has a title and will be considered and taxed as personal property.
With that said, your sales asking price should be attractive to many buyers in your local marketplace. Pro Tip: Be certain you are confident on your exit strategy and realistic sales numbers prior to making any purchase offers.
Verify comparable sales figures thoroughly. Check with your local code department about adding more mobile homes to your existing land. In more rural areas, adding more mobile homes with proper utilities and infrastructure may be possible and financially beneficial. Consider your options, and ask many questions before pulling the trigger and adding more homes to your property.
Wholesaling mobile homes attached to private land is very similar to wholesaling single-family homes. This way, you ensure the seller has the proper title s if needed. These buyers will purchase your real estate purchase contract directly from you. The second big area to attack is the management cost. But that's not all. You also have to factor in your cash-on-cash return on the money you put down.
As the mobile home park industry is an extremely odd niche, it will definitely be in your favor to learn more about it, by taking a course on mobile home park investing. You can also find thousands of parks for sale without even leaving your house, by visiting such sites as Mobilehomeparkstore. The economy isn't wasting any time falling apart. Should you be wasting time not getting started? How the deal must be structured You will need to buy the park with seller financing.
Here's the score card. These tenants usually stay for many years. As long as they pay their rent on time and take care of the property I want to give them incentive to stay in the property. These tenants often have limited options when it comes to finding a property that will fit with their needs and lifestyle, keeping them in the property for much longer than usual.
There are really two types of mobile home rental investments as mentioned in the post above. The first is a mobile home in a park.
The second is a mobile home on its own land. This precludes renting them out. Other parks allow them to be rented. This is a whole other topic, but it has very good returns associated with it. Most renters who rent a mobile home in a park are looking for the least expensive way to rent some housing. Renters of a park mobile home also tend to be more nomadic and do not usually stay in the park long-term. Mobile Home On Its Own land — As discussed in the post, this is my favorite type of mobile home investment.
This rental would work the same as any other site-built home rental. You collect the rent, pay the insurance and property taxes and take care of any repairs. The great thing about this type of rental is that the tenants tend to stay for long periods, and the maintenance costs are usually far below a traditional rental home.
Fix and Flip — This is very popular right now for any property. Mobile homes can be especially profitable, but you have to make sure you purchase the home for the right price. We have found it possible to:. Keep in mind that these homes tend to be dilapidated and in very poor condition. But, we still find that if we are careful, the returns justify the risk. Fix and Sale On Installments — This works pretty much the same as above.
The only difference is that you are selling the home to the buyer for a down payment and then a note to be paid by the buyer over 5 to 8 years. Also, the note bears interest. We have sold many of these if we are not able to find a cash buyer in a reasonable amount of time. A word of caution on this type of sale — you can quickly tie up your working capital in the notes receivable from your tenant buyers.
Try to get enough down payment that your total investment in the home will be paid back within a year between the down payment and the payments received on your note. Chuck has been renovating and flipping properties since At this point he has over properties under his belt. Chuck says that rehabbing homes is the most fun part of his real estate career.
He helps clients get their homes ready to sale, helps his buyers with after-purchase remodeling; often very substantial renovations including full kitchens and bathrooms. Chuck started investing in, buying, renovating, selling, and flipping manufactured homes both in parks and on their own fee-simple lots.
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