Mobile homes

[Avoidconfusion]

I was just wondering if anyone has experence with the purchase and rental of mobile homes.
Back when I was young and single I rented one, it was comfortable. I remember that the lot fee the owner was paying was almost as much as my rent, which I thought was to high.
Are those lot fees still high?
Are these viable to purchase or to high a risk?
As far as a cash flow for a Calgary mobile home you can make money (as long as the renters pay the utilities). My concern would be that you may loose on the value of the property. Not to mention these parks are being shut down and moved around these days for other developments.
Let me know if anyone has experience with these nowadays.
Thanks

 

[invst4profit]

It depends on a lot of factors.
Lot rents vary considerably from park to park depending on location and services so you need to check around. It is easy to find out all the costs and plug in the numbers.
Keep in mind that the park owner usually must approve the persons you intend to rent to.

Trailers are a depreciating asset much like a new car but generally reach a bottom point and flat line. They would strictly be a rental business as opposed to your typical real estate investment.

My park has a couple of homes rented out by the owners but I don`t think they make much money on them. They are older and poorly maintained.
Rent should be similar to an apartment in the same area with the same number of bedrooms depending on condition.
Lot rents and fees will definitely have expenses falling in the 50% range or higher.

 

[MikeMcCrae]

They are bad and ugly! From a financing point of view as well as a real cost point of view you can buy a real appreciating asset. Most times you do not own the land. Lot rent goes a long way toward more affordability on a house. My advise do not by trailers (under any name) on land you do not own and very rarely on land you do.