5 Points that make mobile homes good rentals in Georgia?
Mobile homes have become a comparable alternative to stick-built homes in the last decade in Georgia. Despite the old cliché that only trailer trash lives in Mobile home, these movable houses have become as nice as any brick and mortar house on the market. But, do they make good rental investments?
Cost of acquiring a mobile home
Georgia Mobile homes are a different beast to buy than a stick-built house. While any bank will loan on a standard house, only certain banks and loan companies will lend on new mobile homes (usually with land). Even fewer banks will loan on used mobile homes.
Since buying a mobile home is similar to buying a car (it is personal property, After all), the value of a mobile home goes down over time. This means you can buy a nice used mobile home at a very affordable price and fix it up. If you have cash, you can get a good deal on your next rental house with little competition.
New mobile homes can still get reasonable financing if you add the land to the loan. This creates a nice rental property with less money invested then it would take for a standard house.
Repairing your mobile home rental
Even though your mobile home rental in Georgia is fixed up and looking nice, a lot of the components in a mobile home are still cheaper. A cheap old mobile home can be completely rehabbed for half the cost of the same size stick-built house. This means the buy-in and the repairs will not cost as much as you might think.
Even after you rent out your mobile home, any repairs that are needed while it is being occupied will be cheaper. Except for the original flooring and carpet, everything else is fairly easy to remove and replace.
Finding tenants for your Georgia mobile home rental
Having a good property manager can help in this part. Unfortunately, many people that rent mobile homes are not well off or have the best financial position. Many people that prefer to live in Georgia mobile homes like the lower cost of living and simper lifestyle. This also means they can’t afford to move a lot.
This being said, if you screen your tenants properly, you can get some good prospects that will stay for a long time. Provide a rental that is in the best condition with a fair monthly price and you have an income for life.
Re-sale value of your mobile home rental
Like I said Before, mobile homes in Georgia do not retain their value any more than a car. There is one good point though, you bought your Ga rental cheap with cash. Most of your buyers (when your ready to sell your rental) can not pay cash for a mobile home or get a loan. This is a great investment for seller financing. We buy mobile homes in Georgia with owner financing every chance we can. If the buyer defaults, just take it back and sell it again.
Mobile home rentals make other great investments
I already said it is hard to get bank financing for a Georgia mobile home. I never said anything about private lending… Hint, Hint.
Some investors make an entire portfolio lending on Georgia mobile homes. These notes are cheaper for them to acquire too (just like the home themselves). They are also higher yields than other loans. This may sound bad for the mobile home renal investor, but it is easier to talk to these investors and create a loan payment that allows your rental to cashflow.
After your ready to sell your mobile home rental, you can also cash out by selling the owner-occupied loan you just created for the buyer to that same lender. This allows you to get your cash now instead of later.
If you need help with your mobile home rental or other investment property, contact us.