In the northwest, washinton, is it a good Idea to buy a nice mobile home for 30k and rent it out? To make some extra income on the side.

Asked by Lucy.880, Sedro Woolley, WA Sun May 16, 2010

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6
Tonya Brobeck, , Everett, WA
Sun May 16, 2010
That is a personal preference. I have a lot of clients that have dropped manufactured homes on their existing acreage, or park models or even built rv pads. They then are able to generate income on the property....usually my clients with 3-5 acres or more. It has become more popular with the depressed market.

Remember anything other then a stick built home depreciates. That in turn means the mobile home will.
1 vote
John Arendsen, Agent, Leucadia, CA
Tue Mar 1, 2011
I'm way late for this one but it just popped up on my radar so here goes anyway.

I make a pretty good living buying and renting Manufactured Homes. I've been doing it for 25 years and have never lost money at it. I say go for it. Another way to do it if you find you're having trouble with park management for sub leasing it to do a lease option where you hold title to the home as the legal owner and make your lessee the registered owner.

But be sure you seek legal advice before you go down this road. It can sometimes be tricky and it could vary from state to state.

Today's "Manufactured" "Factory Built" Home is constructed exactly like any Site-Buit (Stick Built) Home. In most cases even better inasmuch as they are built in a indoor climatically controlled environment and inspected by a liecensed HUD inspector through every phase of construction.

As a RE Broker, Manufactured Home Dealer, General Contractor and Manufactured Home Contractor in California, Arizona, Oregon and Florida for the past 25 years I can assure you that having built equally as many site built projects as I have Manufactured Home projects that I would select a manufactured home any day.



As for financing? There are plenty of lenders out there willing to finance MH's if they meet the following requriements. http://activerain.com/blogs/johnarendsen

Please feel free to log onto our Truliahttp://www.trulia.com/blog/onthelevelcontractors/ or Active Rain bloghttp://activerain.com/blogs/johnarendsen for more comprehensive information about the MH Industry.

Or you can check our our website and give us a call or drop us an email. We are RE Brokers, Manufactured Home Dealers and licensed, bonded and insured General Contractors and have been actively engaged in the MH Industry statewide for almost 3 decades.

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0 votes
Dan Chase, Home Buyer, Texas City, TX
Wed May 19, 2010
You have to include at least 1 month of ZERO RENT each year. You have to include repairs that will happen. You have to include lot rent that will need to be paid when you are vacant along with your mortgage payment.

Trailers depreciate in a good market. That means like a car they lose value after they are driven off the lot and keep dropping until they are about worthless.

Perhaps the better way is to buy some land and rent it to someone who has their own trailer. They put their equity on your lot and you have minimal problems and almost no repairs. Land should not depreciate.
0 votes
Don Zimmer, Agent, Anacortes, WA
Wed May 19, 2010
Lucy, Good Question! As discussed by other Agents, you really need to sit down with a pencil, paper, and calculator to go over ALL of the numbers. Don't be afraid to ask someone for help. A few other things to think about: Make sure that you are aware of Washington State Landlord/Tenants rights. You will want to have a Lease and possibly other forms. If you are putting the mobile into a park, no matter if you own the property or lease it, you need to know if the park allows renters. You will also want to talk to your insurance agent to make sure you have the correct insurance as a landlord. Who will pay the utilities and rent? Who will take care of the yard? You will need to set up a separate checking account for the rent and your expenses. Make sure you understand fully how to handle the security depost. You will also need to to talk to your accountant about how to report the rent, depreciation, and expenses to the IRS. You can certainly educate yourself in these matters, and a lot of people are successful landlords, but research, research, and research some more before you put any money into a purchase. Good luck! Let me know if I can help you with any of your real estate needs. I live In Skagit County and would be happy to be your LOCAL Realtor!
Web Reference:  http://donandlindazimmer.com
0 votes
Marcelina Mc…, Agent, Duvall, WA
Mon May 17, 2010
Hi Lucy.880,

The real question is does this pencil? Would the rent cover all your expenses (taxes, insurance, maintainence, water, sewer, garbage, your labor/time as a landlord), plus more (since you are looking for extra income)?

What are your plans with this Mobile? Would you put it on leased land (a park) or would you purchase vacant land?
0 votes
Dan Tabit, Agent, Issaquah, WA
Sun May 16, 2010
Hi Lucy,
The real answer is, it depends. Being a landlord of any property is a part time job. There are lots to know about and take care of. Buying a "nice mobile home" really depends on how nice and how much. Manufactured homes don't have a great reputation among most Real Estate Agents because they don't hold their value the same as stick built homes and financing is more complicated.
You need to get a good perspective on how easy it will be to get a tenant, how much the place will rent for, what maintenance will be required to keep the home nice and maintain the value.
Ultimately someone needs to run all the numbers for cost, rent, maintenance, vacancy rates etc to see if this is a good investment for you to make.
0 votes
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