5 Steps to Buying Mobile Homes As Investments
Mobile Home Investment in Idaho
Are you thinking of investing in mobile homes? These are the steps:
Step 1. Why Mobile Homes
Ask yourself the following questions before you buy a mobile home as an investment. After I purchase the mobile home, will I be selling it? Do I plan to renovate the mobile home? Am I looking to invest in mobile homes in retirement communities? Am I looking for larger mobile homes? These questions will help you find the right purchase.
Step 2. Locate the Mobile Home
There are several ways you can find mobile homes that you want to purchase.?A Realtor with access to the Multiple Listing Service, or MLS, can help you.?There are also public boards that allow you to search for properties for sale by owners.?There are also public auctions that are held by local governments that offer mobile homes for sale. These are usually due to unpaid tax.?If you’re new to mobile home investing, it might be a good idea to work with a professional real estate agent. They know all the tricks and best practices.
Step 3. Evaluate the Mobile Home
Mobile homes are a popular topic for real estate professionals.?You don’t have to be an expert, but it is good to check your research.
Look through the county records to find the deed as well as ownership history.?This is usually not possible for mobile homes with low rent.?However, if there are open certificates, and you buy the property, you might be able the owner to take it back from you before the waiting period, typically four years.?Do you have any restrictions on usage or building requirements?
Take a look at the property’s physical features. Is it large enough to support your plans? Are there too many renovations? Is it located on a canal or other waterway? Is it connected to the utility network? Is there any plan for utility expansion? To ensure you don’t miss any surprises, make sure to check the plat maps and all surveys.
Step 4. Finance Your Mobile Home
Now you have found the mobile home investment that you desire to purchase.?Now, it’s time for the financing!?How will you do that??Are you going to pay cash, or will you need a loan??A bank loan is much easier to obtain to purchase a mobile home than a conventional building, commercial or residential.?Unfortunately, only a few banks will lend on land for a mobile home. They might also require a higher down payment.?You could also form a partnership with other investors to invest in mobile homes. This allows you to pool your resources to purchase a greater number of homes and generate higher returns.
Step 5. Hold Your Mobile Home
What is your holding strategy now that you have purchased your mobile home investment??Is it going to be flipped immediately, or will it remain in your possession for several years??Remember that the quicker you make a profit, the more tax you will have to pay.?Capital gain tax will be lower the longer you keep it.?Remember that there are often owner’s association dues, lot rent, and annual taxes if your mobile home is attached to the land.