Manufactured Homes
- Thread starter KenChu
- Start date
- Joined
- Oct 1, 2007
- Messages
- 348
Ken,
I am not a big fan of mobile homes or trailers as I view them as "depreciating liabilities", and not "appreciating assets". Now with that said, I have structured a few Lease To Own deals and I have done extremely well. I once had a mobile home that I held for two years in Fort McMurray. It cash flowed $1,650 per month, and when I sold it I made $165,000. And I even left $44,000 on the table in order to help my Tenant/Buyer qualify for a mortgage. I have never seen the trailer, and I have never seen the Tenant/Buyer, and I never will! However, I did see all the necessary paperwork, and I performed the required due-diligence on the property and the Tenant/Buyer before I made any decisions.
The only time I would consider doing this is if the mobile home is on its "own" lot, and not a "rented" pad. Remember, its the "real estate" that increases in value, and not the trailer. The other "key" criteria is the city or town it is located. If it is located in a city or town that the fundamentals are strong, I feel more comfortable with my risk exposure.
If you are looking strictly for "cash flow", they may also work as a "buy and hold", but if you are looking for "equity appreciation", I would advise to "stay away", unless the fundamentals are very strong!
Hope this helps?
QUOTE (KenChu @ Jan 18 2010, 05:53 PM) Hi,
Does anyone have any experiences or successes with manufactured homes either as a quick turn deal or buy & hold rentals?
Ken Chu
I am not a big fan of mobile homes or trailers as I view them as "depreciating liabilities", and not "appreciating assets". Now with that said, I have structured a few Lease To Own deals and I have done extremely well. I once had a mobile home that I held for two years in Fort McMurray. It cash flowed $1,650 per month, and when I sold it I made $165,000. And I even left $44,000 on the table in order to help my Tenant/Buyer qualify for a mortgage. I have never seen the trailer, and I have never seen the Tenant/Buyer, and I never will! However, I did see all the necessary paperwork, and I performed the required due-diligence on the property and the Tenant/Buyer before I made any decisions.
The only time I would consider doing this is if the mobile home is on its "own" lot, and not a "rented" pad. Remember, its the "real estate" that increases in value, and not the trailer. The other "key" criteria is the city or town it is located. If it is located in a city or town that the fundamentals are strong, I feel more comfortable with my risk exposure.
If you are looking strictly for "cash flow", they may also work as a "buy and hold", but if you are looking for "equity appreciation", I would advise to "stay away", unless the fundamentals are very strong!
Hope this helps?
QUOTE (KenChu @ Jan 18 2010, 05:53 PM) Hi,
Does anyone have any experiences or successes with manufactured homes either as a quick turn deal or buy & hold rentals?
Ken Chu
Thanks Tony
QUOTE (tonypeters @ Jan 18 2010, 07:13 PM) Ken,
I am not a big fan of mobile homes or trailers as I view them as "depreciating liabilities", and not "appreciating assets". Now with that said, I have structured a few Lease To Own deals and I have done extremely well. I once had a mobile home that I held for two years in Fort McMurray. It cash flowed $1,650 per month, and when I sold it I made $165,000. And I even left $44,000 on the table in order to help my Tenant/Buyer qualify for a mortgage. I have never seen the trailer, and I have never seen the Tenant/Buyer, and I never will! However, I did see all the necessary paperwork, and I performed the required due-diligence on the property and the Tenant/Buyer before I made any decisions.
The only time I would consider doing this is if the mobile home is on its "own" lot, and not a "rented" pad. Remember, its the "real estate" that increases in value, and not the trailer. The other "key" criteria is the city or town it is located. If it is located in a city or town that the fundamentals are strong, I feel more comfortable with my risk exposure.
If you are looking strictly for "cash flow", they may also work as a "buy and hold", but if you are looking for "equity appreciation", I would advise to "stay away", unless the fundamentals are very strong!
Hope this helps?
QUOTE (tonypeters @ Jan 18 2010, 07:13 PM) Ken,
I am not a big fan of mobile homes or trailers as I view them as "depreciating liabilities", and not "appreciating assets". Now with that said, I have structured a few Lease To Own deals and I have done extremely well. I once had a mobile home that I held for two years in Fort McMurray. It cash flowed $1,650 per month, and when I sold it I made $165,000. And I even left $44,000 on the table in order to help my Tenant/Buyer qualify for a mortgage. I have never seen the trailer, and I have never seen the Tenant/Buyer, and I never will! However, I did see all the necessary paperwork, and I performed the required due-diligence on the property and the Tenant/Buyer before I made any decisions.
The only time I would consider doing this is if the mobile home is on its "own" lot, and not a "rented" pad. Remember, its the "real estate" that increases in value, and not the trailer. The other "key" criteria is the city or town it is located. If it is located in a city or town that the fundamentals are strong, I feel more comfortable with my risk exposure.
If you are looking strictly for "cash flow", they may also work as a "buy and hold", but if you are looking for "equity appreciation", I would advise to "stay away", unless the fundamentals are very strong!
Hope this helps?
- Joined
- Oct 1, 2007
- Messages
- 348
You`re welcome Ken!
QUOTE (KenChu @ Jan 18 2010, 08:35 PM) Thanks Tony
QUOTE (KenChu @ Jan 18 2010, 08:35 PM) Thanks Tony
- Joined
- Oct 10, 2007
- Messages
- 4,730
Ken
Give resident expert Greg invst4profit a shout
He owns a runs a trailer park
Give resident expert Greg invst4profit a shout
He owns a runs a trailer park
- Joined
- Sep 14, 2008
- Messages
- 392
Manufactured homes is slightly ambiguous... it seems by other posters that you mean mobile homes.
We own a modular home (built in a factory and moved to site in pieces) in Alberta. But once put on the foundation it`s fixed. ie. it cannot be removed and is treated similarly to a building constructed on site.
We own a modular home (built in a factory and moved to site in pieces) in Alberta. But once put on the foundation it`s fixed. ie. it cannot be removed and is treated similarly to a building constructed on site.